IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN ... · promise to indemnify the policyholder for actual busin ess losses incurred when business operations are involuntarily suspended,

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION T & E CHICAGO LLC, individually ) and on behalf of all others similarly ) situated, ) ) Plaintiff, ) Case No. ___________________ ) v. ) ) CLASS ACTION THE CINCINNATI INSURANCE ) COMPANY, ) ) JURY TRIAL DEMANDED Defendant. )

CLASS ACTION COMPLAINT Plaintiff, T & E Chicago LLC (“Plaintiff”), individually, and on behalf of all others

similarly situated, by and through counsel, brings this action against Defendant, The Cincinnati

Insurance Company (“Cincinnati”), and states as follows:

INTRODUCTION

1. Plaintiff is owner and operator of a tavern located in the Logan Square

neighborhood of Chicago that had been forced, by orders issued by the State of Illinois and the

City of Chicago, to cease its operations—through no fault of its own—as part of the State’s and

City’s efforts to slow the spread of the COVID-19 global pandemic. The closures mandated by

those orders presented an existential threat to this small, local business.

2. The novel coronavirus, SARS-CoV-2, is a highly contagious virus which has

rapidly spread and continues to spread around the world and across the United States. The SARS-

CoV-2 virus remains stable and transmittable in aerosols and on various surfaces for prolonged

periods of time. The illness caused by SARS-CoV-2 is called COVID-19 (Coronavirus Disease

2019).

Case: 1:20-cv-04001 Document #: 1 Filed: 07/08/20 Page 1 of 49 PageID #:1

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3. On March 11, 2020, the COVID-19 outbreak—which had first been identified

several months prior—was designated as a worldwide pandemic by the World Health Organization

(WHO). Director General Tedros Adhanom Ghebreyesus of WHO declared: “WHO has been

assessing this outbreak around the clock and we are deeply concerned both by the alarming levels

of spread and severity, and by the alarming levels of inaction. We have therefore made the

assessment that COVID-19 can be characterized as a pandemic.”1

4. On March 13, 2020, the President of the United States also declared the pandemic

to be of sufficient severity to warrant an emergency declaration for all States, territories, and the

District of Columbia.

5. On March 16, 2020, the Centers for Disease Control and Prevention, and members

of the national Coronavirus Task Force issued to the American public guidance, styled as “30 Days

to Slow the Spread” for stopping the spread of COVID-19. This guidance advised individuals to

adopt far-reaching social distancing measures, such as working from home, avoiding shopping

trips and gatherings of more than 10 people, and staying away from bars, restaurants, and food

courts.2

6. Shortly thereafter, many state government administrations across the nation

recognized the need to take steps to protect the health and safety of their residents from the human

to human and surface to human spread of COVID-19.

7. Governors from states across the nation began to publicly announce an escalating

series of various civil authority, “stay at home” orders that limited public gatherings, deemed

1 See https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarks-at-

the-media-briefing-on-covid-19---11-march-2020. 2 https://www.whitehouse.gov/wp-content/uploads/2020/03/03.16.20_coronavirus-

guidance_8.5x11_315PM.pdf.


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certain business sectors “essential,” mandated the partial or complete closure of normal business

operations for businesses not deemed “essential,” and placed stringent requirements on many

businesses deemed “essential” in order for them to continue operating.

8. Countless businesses in “stay at home” order states across the nation were forced

by law to overhaul their business models, scale back their business dramatically, or shutter—either

temporarily or permanently. Foot traffic in all businesses also took a sharp downturn as the public

began to avoid public spaces of all types, further harming businesses’ ability to stay afloat.

Furloughs and layoffs were rampant in the private sector. Unemployment insurance filings reached

record levels. The major stock indices plummeted, erasing trillions of dollars in shareholder value

and retirement accounts.

9. The result of these far-reaching restrictions and prohibitions was catastrophic for

most non-essential businesses, especially restaurants and other foodservice businesses, along with

many other retail establishments, entertainment venues, and other small, medium, and large

businesses who were forced to close, furlough employees, and endure a sudden shutdown of cash

flow that threatened their survival.

10. On March 15, 2020, Illinois Governor Pritzker issued an order first closing to the

public all restaurants, bars, and movie theaters in Illinois in an effort to address the ongoing

COVID-19 pandemic. Governor Pritzker thereafter ordered all “non-essential businesses” to close

and has issued further orders extending the stay-at-home Closure Order period several times.

11. As a result of the Closure Orders, Plaintiff was forced to halt ordinary operations,

resulting in substantial lost revenues and forcing Plaintiff to furlough or lay off employees.

12. Most businesses insure against such catastrophic events like the unforeseen

COVID-19 pandemic through all-risk commercial property insurance policies. These policies


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promise to indemnify the policyholder for actual business losses incurred when business

operations are involuntarily suspended, interrupted, curtailed, when access to the premises is

prohibited because of direct physical loss or damage to the property, or by a civil authority order

that restricts or prohibits access to the property. This coverage is commonly known as “business

interruption coverage” and is standard in most all-risk commercial property insurance policies.

13. To protect its business from situations like these, which threaten its operations and

livelihood based on factors wholly outside of its control, Plaintiff obtained business interruption

insurance from Cincinnati. A copy of that policy, Policy No. 05EPP0497216, with effective dates

from July 20, 2019 to July 20, 2020 (the “Policy”), is attached as Exhibit A.

14. Cincinnati purports to understand the reason insureds like Plaintiff obtain business

interruption coverage. Cincinnati thus promises that “[w]hen it comes to paying claims, we'll look

for coverage-not exceptions, helping to keep your business running in the event of a claim.”3

Cincinnati markets its business interruption insurance as helping to cover “loss of income and

necessary extra expenses you incur to keep your business operating,” including lost profits,

payroll, taxes, and other operating expenses.4 Cincinnati assures prospective customers that

Cincinnati is “everything insurance should be.”5

15. Accordingly, Plaintiff purchased business interruption insurance from Cincinnati.

Plaintiff also dutifully paid premiums to Cincinnati for that coverage, so that when the

3 Protection for Businesses and Organizations: Fulfilling our Promises, The Cincinnati

Insurance Company, available at https://www.cinfin.com/business-insurance. 4 Protection for Your Commercial Property, The Cincinnati Insurance Company, available

at https://www.cinfin.com/business-insurance/products/property-insurance. 5 About Us, The Cincinnati Insurance Company, available at https://www.cinfin.com/about-

us.


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unimaginable occurred, Plaintiff would be protected. Plaintiff purchased an “all risks” Policy that

cover every one of those unimaginable risks unless the policy exclusions remove that risk from

coverage. And, nothing in plaintiff’s Policy excludes viruses from coverage. Nor does anything in

the Policy exclude governmental closure orders.

16. But despite Cincinnati’s express promise in its Policy to cover Plaintiff’s business

interruption losses in circumstances when it was forced to curtail its operations and close its

premises to the public by the series of Executive Orders issued by the Governor to address a

spreading pandemic, Cincinnati issued a blanket denial to Plaintiff for any losses related to the

pandemic and the Closure Orders—without first conducting any meaningful coverage

investigation, let alone a “reasonable investigation based on all available information” as required

under Illinois law.

17. The only rationale Cincinnati provided to Plaintiff for its categorical proclamation

that Plaintiff’s losses are not covered, is its assertion that the presence of the coronavirus, which

led to the Closure Orders that prohibited Plaintiff from operating its businesses, did not constitute

“direct physical damage” or “direct physical loss.” See April 15, 2020 Denial Letter attached hereto

as “Exhibit B.”

18. But Cincinnati’s conclusory statement that the actual or potential presence of a

harmful, contagious substance like SARS-CoV-2 does not result in property damage is contrary to

the law in Illinois. Illinois courts have long held that the presence of a dangerous substance in a

property constitutes “physical loss or damage.” See, e.g., Bd. of Educ. of Twp. High Sch. Dist. No.

211 v. Int’l Ins. Co., 720 N.E.2d 622, 625–26 (Ill. Ct. App. 1999), as modified on denial of reh’g

(Dec. 3, 1999).

19. In a recent decision, the Pennsylvania Supreme Court reached a comparable


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conclusion, finding that the COVID-19 pandemic constituted a natural disaster causing direct

property damage to all businesses impacted. See Friends of Danny DeVito, et al. v. Tom Wolf,

Governor, et al., No. 68 MM 2020, 21 n.11, 2020 WL 1847100, at *10 n.11 (Pa. Apr. 13, 2020).

20. Moreover, unlike many commercial property policies available in the market, the

Policy sold by Cincinnati to the Plaintiff did not include an exclusion for loss caused by a virus or

a pandemic. Thus, Plaintiff reasonably expected that the insurance it purchased from Cincinnati

included coverage for property damage and business interruption losses caused by viruses like the

SARS-CoV-2 coronavirus.

21. If Cincinnati had wanted to exclude pandemic-related losses under the Plaintiff’s

policy—as many other insurers have done in other policies—it easily could have attempted to do

so on the front-end with an express exclusion. Instead, Cincinnati waited until after it collected

Plaintiff’s premiums, and after a pandemic and the resulting Closure Orders caused catastrophic

business losses to Plaintiff, to try to limit its exposure through its erroneous assertion that the

presence of the coronavirus is not “physical loss” and therefore is not a covered cause of loss under

its policies.

22. The fact that the insurance industry has created specific exclusions for pandemic-

related losses under similar commercial property policies undermines Cincinnati’s assertion that

the presence of a virus, like the coronavirus, does not cause “physical loss or damage” to property.

23. Indeed, if a virus could never result in a “physical loss” to property, there would be

no need for such an exclusion. Moreover, Cincinnati’s assertion ignores the fact that their policies

promised to provide coverage for losses incurred due to government actions “taken in response to

dangerous physical conditions,” even if those dangerous physical conditions cause damage to

property at locations other than those insured under their policies.


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24. Thus, Cincinnati’s wholesale, cursory coverage denials were arbitrary and

unreasonable, and inconsistent with the facts and plain language of the Policy it issued to Plaintiff.

These denials appear to be driven by Cincinnati’s desire to preempt its own financial exposure to

the economic fallout resulting from the COVID-19 pandemic crisis, rather than to initiate, as

Cincinnati is obligated to do, a full and fair investigation of the claims and a careful review of the

policy it sold to Plaintiff in exchange for valuable premiums.

25. Cincinnati's interpretation of the Policy is wrong, and its denial for losses caused

by limitations on the physical use and access to Plaintiff’s property breached its obligations under

the contract of insurance.

26. As a result of Cincinnati’s wrongful denial of coverage, Plaintiff files this action

seeking a declaratory judgment establishing that it is entitled to receive the benefit of the insurance

coverage it purchased, and ordering Cincinnati to pay Plaintiff’s lost business income, extra

expenses, and other business losses Plaintiff has sustained in light of the COVID-19 pandemic and

actions by governmental authorities requiring closure of Plaintiff’s covered business premises.

This Complaint also seeks damages for breach of contract, for breach of good faith and fair dealing,

and for bad faith claims handling under 215 ILCS 5/155.

THE PARTIES 27. Plaintiff, T & E Chicago LLC is an Illinois limited liability company with its

principal place of business in Chicago, Illinois. Plaintiff owns and operates the Navigator

Taproom, a tavern located in the Logan Square neighborhood of Chicago.

28. Defendant, Cincinnati, Cincinnati is an Ohio insurance company, with its principal

place of business located in Ohio. Cincinnati is engaged in the business of selling insurance

contracts to commercial entities such as Plaintiff in Illinois and elsewhere.


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JURISDICTION & VENUE 29. This Court has subject matter jurisdiction under 28 U.S.C. § 1332 because there is

complete diversity between the parties and the amount in controversy exceeds $75,000, exclusive

of interest and costs.

30. This Court has personal jurisdiction over Defendants pursuant to the Illinois “long

arm statute,” 735 ILCS 5/2-209, because Defendants have submitted to jurisdiction in this state

by: (a) transacting business in Illinois; (b) contracting to insure a person, property or risk located

within Illinois at the time of contracting; and (c) making a contract substantially connected with

Illinois. See 735 ILCS 5/2-209(1), (4), (7). In addition, Defendants exercise substantial, systematic

and continuous contacts with Illinois by doing business in Illinois, serving insureds in Illinois, and

seeking additional business in Illinois.

31. This Court has jurisdiction to grant declaratory relief under 28 U.S.C. § 2201

because an actual controversy exists between the parties as to their respective rights and

obligations under the Policy with respect to the loss of business arising from the civil authority

event detailed below.

32. Venue is proper in this district pursuant to 28 U.S.C. § 1391(b)(2) because a

substantial part of the events or omission giving rise to Plaintiff’s claims occurred within the

Northern District of Illinois.

FACTUAL ALLEGATIONS

The COVID-19 Pandemic 33. SARS-CoV-2 is a highly contagious coronavirus, an organic human pathogen,

which has rapidly spread around the world. It remains stable and transmittable in aerosols and on

various surfaces for prolonged periods of time. The illness caused by SARS-CoV-2 is called


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COVID-19 (Coronavirus Disease 2019).

34. SARS-CoV-2 emerged in Wuhan, China, in December 2019. In January 2020, the

first known case of a U.S. resident infected by SARS-CoV-2 was reported in the State of

Washington. SARS-CoV-2 quickly spread and by March 2020, cases had been confirmed in many

areas across the United States.

35. SARS-CoV-2 is a coronavirus that is believed to be primarily spread through

respiratory droplets6 and by “fomite”— meaning objects, materials, or surfaces that have been

physically contaminated or infected by respiratory droplets—and it can survive on surfaces for

extended periods of time. Recent information on the CDC’s website provides that COVID-19

spreads when people are within six feet of each other or when a person comes in contact with a

surface or object that has the virus on it.7

36. Researchers estimate that the number of people that an individual infected with

SARS-CoV-2 will go on to infect—or basic reproduction number (Ro or R-naught) – is between

3.3 and 6.5.8 The higher the Ro figured, the faster an infectious disease will spread. By comparison,

6 According to the World Health Organization (“WHO”): “People can catch COVID-19

from others who have the virus. The disease can spread from person to person through small droplets from the nose or mouth which are spread when a person with COVID-19 coughs or exhales. These droplets land on objects and surfaces around the person. Other people then catch COVID-19 by touching these objects or surfaces, then touching their eyes, nose or mouth.” See Q&A on coronaviruses (COVID-19), “How does COVID-19 spread?” World Health Organization (Apr. 16, 2020), available at https://www.who.int/news-room/q-a-detail/qacoronaviruses.

7 How COVID-19 Spreads, Ctr. for Disease Control and Prevention (April 13, 2020), https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/how-covid-spreads.html.

8 See Ying Liu et al., The reproductive number of COVID-19 is higher compared to SARS

coronavirus, Journal of Travel Medicine (Feb. 13, 2020), available at https://academic.oup.com/jtm/article/27 /2/taaa021/5735319.


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the Ro estimate for the seasonal flu is 1.3,9 and for Ebola during a prior catastrophic epidemic was

1.5.10

37. Droplets containing COVID-19 infect a variety of surfaces and objects for a period

of a hours, days, or weeks, if not longer. According to a scientific study in The New England

Journal of Medicine, the coronavirus responsible for the COVID-19 disease—SARS-CoV-2—can

physically infect and survive on surfaces for up to 72 hours.11 Another scientific study documented

in the Journal of Hospital Infection found that human coronaviruses, such as SARS-CoV-2, can

remain infectious on inanimate surfaces at room temperature for up to nine days.12

38. Other recent scientific evidence shows that COVID-19 can survive and remain

virulent on stainless steel and plastic for three to six days; on glass and banknotes for three days;

and on wood and cloth for 24 hours.13 These materials are prevalent and unavoidable throughout

9 See Matthew Biggerstaff et al., Estimates of the reproduction number for seasonal

pandemic, and zoonotic influenza: a systematic review of the literature, BMC Infection Diseases (Sept. 4, 2014), available at https://bmcinfectdis.biomedcentral.com/articles/1 O. l 186/1471-2334-14-480.

10 See Adnan Khan et al., Estimating the basic reproductive ratio for the Ebola outbreak in

Liberia and Sierra Leone, Infectious Diseases of Poverty (Feb. 24, 2015), available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4347917/.

11 Neeltje van Doremalen, Ph.D., et al., Aerosol and Surface Stability of SARS-CoV-2 as

Compared with SARS-CoV-1, The New England Journal of Medicine (April 16, 2020), available at https://www.nejm.org/doi/pdf/10.1056/NEJMc2004973?articleTools=true.

12 See G. Kampf, et al. Persistence of coronavirus on inanimate surfaces and their

inactivation with biocidal agents (February 06, 2020), available at https://www.journalofhospitalinfection.com/action/showPdf?pii=S0195-6701%2820%2930046-3.

13 See Neeltje van Doremalen et al., “Aerosol and Surface Stability of SARS-CoV-2 as

Compared to SARS-Co V-1,” New England Journal of Medicine (Mar. 17, 2020), available at https://www.nejm.org/doi/pdf/10.l056/NEJMc2004973; Alex W.H. Chin et al., “Stability of SARS-Co V-2 in different environmental conditions,” The Lancet Microbe (Apr. 2, 2020), available at https://doi.org/10.1016/S2666-5247(20)30003-3.


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Plaintiff’s facility.

39. Emerging research on the virus and recent reports from the CDC even suggest that

the SARS-CoV-2 strains physically infect and can stay alive on surfaces for more than two weeks,

a characteristic that renders property exposed to the contagion potentially unsafe and dangerous.

Specifically, after inspecting a cruise ship inhabited by passengers who carried SARS-CoV-2, the

CDC reported that the virus was detectable on various surfaces inside the cruise ship up to 17 days

after passengers had vacated the cabins.14

40. One report based on recent research even suggests that SARS-CoV-2 can persist on

surfaces under certain commonplace conditions for up to 28 days.15

41. SARS-CoV-2 reportedly has an incubation period of 2-12 days, during which time

it can be transmitted even before symptoms develop. Symptoms often include fever, cough,

shortness of breath, and, in severe cases, pneumonia.

42. For these reasons, “[p]ublic health experts and elected officials have emphasized

again and again that social distancing is the best tool … to slow the coronavirus outbreak.”16

43. On January 21, 2020, the CDC reported the first confirmed American COVID-19

case in the State of Washington.

14 See Leah E. Moriary et al., “Public Health Responses to COVID-19 Outbreaks on Cruise

Ships-Worldwide, February-March 2020,” 69 Morbidity and Mortality Weekly Report 347 (Mar. 23, 2020), available at https://www.cdc.gov/mmwr/volumes/69/wr/pdfs/mm6912e3-H.pdf.

15 Gunter Kampf et al., Persistence of coronaviruses on inanimate surfaces and their inactivation with biocidal agents, 104 J. Of Hospital Infection 246 (2020), available at https:/ /www.journalofhospitalinfection.com/article/SO 195-6701 (20)30046-3/fulltext.

16 See Yuliya Pashina-Kottas, et al., “This 3-D Simulation Shows Why Social Distancing Is So Important,” The New York Times (Apr. 21, 2020), available at https://www.nytimes.com/interactive/2020/04/14/science/coronavirus-transmission-cough-6-feet-ar-ul.html.


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44. On March 9, 2020, Illinois Governor Pritzker declared all counties in the State of

Illinois as a disaster area, specifically “in response to the outbreak of COVID-19.”

45. On March 11, 2020, the WHO declared COVID-19 to be a global pandemic.

46. On March 13, 2020, the President of the United States declared a national

emergency as a result of the COVID-19 outbreak.

47. On March 15, 2020, Governor Pritzker issued Executive Order 2020-07 which

declared that a public health emergency existed throughout the State of Illinois as a result of the

COVID-19 outbreak in the United States and a confirmed report that SARS-CoV-2 was in Illinois,

and which closed to the public all restaurants, bars, and movie theaters in Illinois beginning on

March 16, 2020 and continuing through March 30, 2020, in an effort to address the ongoing

COVID-19 pandemic.17

48. This Closure Order was in direct response to the “ COVID-19 outbreak” and the

physical presence of SARS-CoV-2 on property throughout the State of Illinois. It specifically

stated that the goal was to respond to the rapid spread of COVID-19 by restricting in-person

interactions in environments with “frequently used services in public settings, including bars and

restaurants…” The March 15th Closure Order also stated that “the ongoing spread of COVID-19

and the danger the virus poses to the public’s health and wellness require the reduction of on-

premises consumption of food and beverages.” The March 15th Closure Order thus recognized

that the spread of COVID-19 throughout Illinois could not be sufficiently abated by cleaning and

disinfecting frequently used surfaces in public settings; it mandated that access to such surfaces be

suspended altogether.

17 https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-07.aspx.


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49. On March 16, 2020, Chicago Mayor Lightfoot issued guidance for restaurants and

bars to comply with the Governor’s Closure Order. That guidance barred “the consumption of food

or beverage. . . inside [any] restaurant or bar” and the congregation of persons “inside or outside

[any] restaurant or bar.” At “midnight” Chicago would begin “any necessary enforcement

measures.”18

50. A few days later, on March 20, 2020, Governor Pritzker issued Executive Order

2020-10, which, among other things, prohibited any gathering of more than ten people, except for

limited activities identified in that order, and required individuals to stay in their home or place of

residence, except to conduct essential activities, essential governmental functions, or to operate

essential businesses, and ordered all “non-essential businesses” to close through April 7, 2020.19

51. On March 25, 2020, Mayor Lightfoot issued a press release reminding Chicagoans

of the “critical importance” of complying with the Governor’s stay-at-home order. The press

release noted that the Chicago Police Department is “empowered to enforce the Governor’s order

through citations and additional measures.”20

52. On April 1, Governor Pritzker again declared all counties in the State of Illinois as

a disaster area, specifically “in response to the exponential spread of COVID-19.”21

53. On April 1, 2020, Governor Pritzker issued Executive Order 2020-18, which

continued and extended the prior Executive Orders issued in response to the outbreak of COVID-

18 Press Release, City of Chicago, City of Chicago Issues Guidance and Support for Covid-

19 Restrictions on Restaurant Dining and Taverns (Mar. 16, 2020). 19 https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-10.aspx. 20 Press Release, City of Chicago, Mayor Lightfoot Reminds Residents of Critical Importance

of Staying at Home to Prevent Further Spread of Covid-19 (Mar. 15, 2020). 21 https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-19.aspx.


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19 through and until April 30, 2020.22 The March 20 and April 1 Closure Orders were again in

direct response to the continued and increasing presence of SARS-CoV-2 at property on or around

Plaintiffs’ premises.

54. As of as of April 30, 2020, there were nearly 53,000 confirmed cases of COVID-

19 in 97 Illinois counties and 2,350 deaths from COVID-19. It is likely that hundreds of thousands

(if not millions) more have been infected by SARS-CoV-2 but have not been diagnosed with

COVID-19. While in some cases asymptomatic, COVID-19 is also known to cause severe and

sometimes fatal respiratory failure. This, in addition to the highly contagious nature of SARS-

CoV-2, renders any property exposed to the contagion unsafe and dangerous. By Executive Orders

2020-32 and 2020-33, dated April 30, 2020, Governor Pritzker extended the statewide stay-at-

home order through May 29, 2020.23 The March 15, March 20, April 1 and April 30 Executive

Orders are collectively referred to as the “Closure Orders.”

55. The Commissioner of Health of the City of Chicago has likewise issued a series of

orders, including Order No. 2020-3 – Amended And Reissued, effective May 1, 2020, applying

the Governor’s Closure Orders.24 As of May 11, 2020, the City of Chicago reported 31,477 cases

of COVID-19 had been identified in Chicago residents to that date, and 79,007 in the state of

Illinois.25

22 https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-18.aspx. 23 https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-32.aspx.;

https://www2.illinois.gov/Pages/Executive-Orders/ExecutiveOrder2020-33.aspx. 24 https://www.chicago.gov/content/dam/city/depts/cdph/HealthProtectionandResponse

/CDPH%20Order%202020-3%20-%20Lakefront%20closure%20AMENDED%20AND%20RE-ISSUED.pdf.

25 https://www.chicago.gov/city/en/sites/covid-19/home.html.


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56. Further, multiple structures in the vicinity of Plaintiff’s covered premises reported

COVID-19 infections or outbreaks, and were in fact physically impacted by the presence of the

SARS-CoV-2 virus on or around the surfaces of these structures, including a near-by senior living

facility.26

57. The Governor of the State of Illinois, the Mayor of Chicago and the Commissioner

of Health of the City of Chicago are civil and/or governmental authorities as contemplated by the

Policy.

58. Plaintiff’s business remained open and operating throughout the entire period from

December 2019 through March 16, 2020.

59. It was when Illinois State and local governments entered civil authority orders

beginning in March 2020 that Plaintiff was forced to close its premises to the public and interrupt

its business operations.

The Cincinnati Policy 60. To protect its thriving business from interruption and other perils, Plaintiff

purchased the Policy from Cincinnati, which includes loss of business income, extra expense,

property, liability, and other coverages.

61. In exchange for substantial premiums, Cincinnati agreed to provide the insurance

coverages described in Plaintiff’s Policy.

62. Plaintiff has paid all required premiums and performed all conditions precedent for

26 Woodbridge Nursing Pavilion, located in the same Logan Square neighborhood as

Plaintiff’s business, reportedly “has the highest number of COVID-19 cases among all long-term care facilities in Illinois.” See Families Worry Over Safety of Residents Stuck Inside Nursing Home With 150 COVID-19 Cases, available at https://abc7chicago.com/amp/woodbridge-nursing-pavilion-chicago-coronavirus-home-logan-square/6146020/.


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obtaining coverage under the Policy.

63. The Policy includes, in pertinent part, property coverage terms and conditions in

Form FM 101 05 16 (BUILDING AND PERSONAL PROPERTY COVERAGE FORM

(INCLUDING SPECIAL CAUSES OF LOSS)). The Policy also incorporates an endorsement

form titled BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM – ILLINOIS,

which adds further coverage for Business Income and Extra Expense coverage, Civil Authority

Coverage and Extended Business Income Coverage. (Form FA 213 IL 05 16, at pp. 1-3).

64. The Policy coverage broadly protects Plaintiff against losses suffered by Plaintiff

when it was forced to close its doors to the public, including property damage, the loss of “Business

Income” and “Extra Expense” incurred due to the necessary “suspension” of Plaintiff’s

“operations.”

65. In many parts of the world, property insurance is sold on a specific peril basis. Such

policies cover a risk of loss only if that risk of loss is specifically listed (e.g., hurricane, earthquake

H1N1, etc.). Most property policies sold in the United States, however, including those sold by

Cincinnati, are all-risk property damage policies. These types of policies cover all risks of loss

except for risks that are expressly and specifically excluded.

66. The Plaintiff’s Policy is an “all risks” policy. That is, the Policy covers Plaintiff for

any peril, imaginable or unimaginable, unless expressly excluded or limited.

67. The Policy contains several exclusions, which preclude coverage for the risks

identified in those exclusions.

68. Cincinnati did not exclude or limit coverage for losses from viruses or pandemics,

either in the main coverage form or in any endorsement. Likewise, none of the exclusions in the

Policy preclude coverage for damage to property caused by the SARS-CoV-2 virus itself, whether


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at Plaintiff’s covered premises or at any other premises.

69. Nor do any of the exclusions in the Policy preclude coverage for the governmental

orders pursuant to which Plaintiff closed its premises to the public and suspended its regular

business operations. The governmental orders therefore constitute a covered direct loss under the

Policy.

70. Thus, any losses sustained by Plaintiff because of the damage caused by the SARS-

CoV-2 virus itself, or resulting from the action of civil authority prohibiting access to and use of

its covered premises in response to the COVID-19 pandemic, are covered by the Policy.

71. In the Policy, specifically, Cincinnati agreed to pay for direct physical loss or

damage to Covered Property unless specifically excluded or limited in the policy. The insuring

agreement for Building And Personal Property Coverage provides:

SECTION A. COVERAGE We will pay for direct “loss” to Covered Property at the “premises” caused by or resulting from any Covered Cause of Loss.

(FM 101 05 16, at p. 3).

72. The policy defines “loss” as “accidental physical loss or accidental physical

damage.” (FM 101 05 16, at p. 38). Covered causes of loss “means direct ‘loss’ unless the ‘loss’

is excluded or limited in this Coverage Part.” (FM 101 05 16, at p. 5).

73. In addition to property damage losses, Cincinnati agreed in the Policy to pay for its

insureds’ loss of Business Income caused by and Extra Expense incurred due to a Covered Cause

of Loss. Among others, Cincinnati promised to pay for the loss of Business Income and Extra

Expense sustained due to the necessary “suspension” of the insured’s “operations” during the

“period of restoration.”

74. In that regard, the Policy includes Coverage Extensions, including for Business


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Income and Extra Expense coverage, Civil Authority Coverage and Extended Business Income

Coverage. (FM 101 05 16, at pp. 18-21). The Policy specifies that Coinsurance does not apply to

these Coverage Extensions.

SECTION E. ADDITIONAL CONDITIONS, 1. Coinsurance, does not apply to these Coverage Extensions.

(FM 101 05 16, at p. 17). The Policy also incorporates an endorsement form titled BUSINESS

INCOME (AND EXTRA EXPENSE) COVERAGE FORM – ILLINOIS, which adds further

coverage for Business Income and Extra Expense coverage, Civil Authority Coverage and

Extended Business Income Coverage. (Form FA 213 IL 05 16, at pp. 1-3).

75. Coverage for Business Income and Extra Expense are provided in the property

coverage form, with the following coverage grant provisions:

(1) Business Income We will pay for the actual loss of “Business Income” and “Rental Value” you sustain due to the necessary “suspension” of your “operations” during the “period of restoration”. The “suspension” must be caused by direct “loss” to property at a “premises” caused by or resulting from any Covered Cause of Loss. With respect to “loss” to personal property in the open or personal property in a vehicle or portable storage unit, the “premises” include the area within 1,000 feet of the building or 1,000 feet of the “premises”, whichever is greater.

* * *

(2) Extra Expense

(a) We will pay Extra Expense you sustain during the “period of restoration”. Extra Expense means necessary expenses you sustain (as described in Paragraphs (2)(b), (c) and (d)) during the “period of restoration” that you would not have sustained if there had been no direct “loss” to property caused by or resulting from a Covered Cause of Loss.

(b) If these expenses reduce the otherwise payable "Business Income" “loss”, we will pay expenses (other than the expense to repair or replace property as described in Paragraph 2.d.) to: 1) Avoid or minimize the “suspension” of business and


19

to continue “operations” either: a) At the “premises”; or b) At replacement “premises” or temporary

locations, including relocation expenses and costs to equip and operate the replacement location or temporary location; or

2) Minimize the “suspension” of business if you cannot continue “operations”.

(c) We will also pay expenses to: 1) Repair or replace property; or 2) Research, replace or restore the lost information on

damaged “valuable papers and records”; but only to the extent this payment reduces the otherwise payable “Business Income” loss. If any property obtained for temporary use during the “period of restoration” remains after the resumption of normal “operations”, the amount we will pay under this Coverage Form will be reduced by the salvage value of that property.

(d) Extra Expense does not apply to “loss” to Covered Property as described in the BUILDING AND PERSONAL PROPERTY COVERAGE FORM.

(FM 101 05 16, at p. 10). 76. The Illinois Business Income endorsement provides additional, separate Business

Income and Extra Expense coverage grants.

1. Business Income a. We will pay for the actual loss of “Business Income” you

sustain due to the necessary “suspension” of your “operations” during the “period of restoration”. The “suspension” must be caused by direct “loss” to property at “premises” which are described in the Declarations and for which a “Business Income” Limit of Insurance is shown in the Declarations. The “loss” must be caused by or result from a Covered Cause of Loss. With respect to “loss” to personal property in the open (or personal property in a vehicle or portable storage unit), the “premises” include the area within 1,000 feet of the building or 1,000 feet of the “premises”, whichever distance is greater.

* * *

2. Extra Expense

a. Extra Expense coverage is provided at the “premises”


20

described in the Declarations only if the Declarations show that “Business Income” coverage applies at that “premises”.

b. Extra Expense means necessary expenses you sustain (as described in Paragraphs 2.c., d. and e.) during the “period of restoration” that you would not have sustained if there had been no direct ‘loss” to property caused by or resulting from a Covered Cause of Loss.

c. If these expenses reduce the otherwise payable “Business Income” loss, we will pay expenses (other than the expense to repair or replace property as described in Paragraph 2.d.) to: (1) Avoid or minimize the “suspension” of business and

to continue “operations” either: (a) At the “premises”; or (b) At replacement “premises” or temporary

locations, including relocation expenses and costs to equip and operate the replacement location or temporary location; or

(2) Minimize the “suspension” of business if you cannot continue “operations”.

d. We will also pay expenses to: (1) Repair or replace property; or (2) Research, replace or restore the lost information on

damaged “valuable papers and records”; but only to the extent this payment reduces the otherwise payable “Business Income” loss. If any property obtained for temporary use during the “period of restoration” remains after the resumption of normal “operations”, the amount we will pay under this Coverage Form will be reduced by the salvage value of that property.

e. Extra Expense as described in Paragraphs 2.a. thru 2.d. does not apply to “loss” to Covered Property as described in the BUILDING AND PERSONAL PROPERTY COVERAGE FORM.

(FA 213 05 16 at pp. 1-2). 77. The Policy defines “business income” as follows:

2. “Business Income” means the: a. Net Income (net profit or loss before income taxes) that

would have been earned or incurred; and b. Continuing normal operating expenses sustained, including

payroll.

(FA 213 05 16, at p. 38). Likewise, “suspension” is defined to mean:


21

a. The slowdown or cessation of your business activities; and b. That a part or all of the “premises” is rendered untenantable.

(FA 213 05 16, at p. 40). 78. The presence of virus or disease can constitute physical damage to property, as the

insurance industry has recognized since at least 2006. At that time, the insurance industry drafting

arm, Insurance Services Office (ISO), and the American Association of Insurance Services (AAIS)

represented hundreds of insurers in seeking approval of a new virus exclusion. ISO submitted to

state regulators a memo titled “New Endorsements Filed To Address Exclusion of Loss Due to

Virus or Bacteria,” dated July 6, 2006, that included the following representations:

Disease-causing agents may render a product impure (change its quality or substance), or enable the spread of disease by their presence on interior building surfaces or the surfaces of personal property. When disease-causing viral or bacterial contamination occurs, potential claims involve the cost of replacement of property (for example, the milk), cost of decontamination (for example, interior building surfaces), and business interruption (time element) losses. Although building and personal property could arguably become contaminated (often temporarily) by such viruses and bacteria, the nature of the property itself would have a bearing on whether there is actual property damage. An allegation of property damage may be a point of disagreement in a particular case.27

79. The Policy also includes “Civil Authority” coverage, pursuant to which Cincinnati

promised to pay for the loss of Business Income and necessary Extra Expense sustained by Plaintiff

that is “caused by action of civil authority that prohibits access” to Plaintiff’s insured premises.

80. Civil Authority Coverage is provided in the property coverage form, with the

following grant provisions:

(3) Civil Authority When a Covered Cause of Loss causes damage to property other than Covered Property at a “premises”, we will pay for the actual

27 See https://www.propertyinsurancecoveragelaw.com/files/2020/03/ISO-Circular-LI-CF-2006-175-Virus.pdf.


22

loss of “Business Income” and necessary Extra Expense you sustain caused by action of civil authority that prohibits access to the “premises”, provided that both of the following apply: (a) Access to the area immediately surrounding the damaged

property is prohibited by civil authority as a result of the damage; and

(b) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property.

This Civil Authority coverage for “Business Income” will begin immediately after the time of that action and will apply for a period of up to 30 days from the date of that action. This Civil Authority coverage for Extra Expense will begin immediately after the time of that action and will end: 1) 30 consecutive days after the time of that action; or 2) When your "Business Income" coverage ends; whichever is later.

(FM 101 05 16, at p. 19). 81. Further, the Illinois Business Income endorsement provides additional, separate

Civil Authority coverage.

b. Civil Authority When a Covered Cause of Loss causes direct damage to property other than Covered Property at the “premises”, we will pay for the actual loss of “Business Income” you sustain and necessary Extra Expense you sustain caused by action of civil authority that prohibits access to the “premises”, provided that both of the following apply: (1) Access to the area immediately surrounding the damaged

property is prohibited by civil authority as a result of the damage; and

(2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property.

Civil Authority coverage for “Business Income” will begin immediately after the time of the first action of civil authority that


23

prohibits access to the "premises" and will apply for a period of up to 30 consecutive days from the date on which such coverage began. Civil Authority coverage for Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the "premises" and will end 30 consecutive days after the date of that action; or when your Civil Authority coverage for "Business income" coverage ends, whichever is later.

(FA 213 05 16 at 2). 82. This Civil Authority coverage is triggered when any non-excluded cause results in

“damage to property other than property” at the Plaintiff’s premises, and is intended to cover losses

resulting from governmental actions “taken in response to dangerous physical conditions.”

83. This Civil Authority provision is an independent basis for business interruption

coverage. That is, it can be triggered even when the standard business interruption coverage is not.

84. Parts of the Policy, including the “Business Income (and Extra Expense) Coverage

Form,” are standardized forms drafted by ISO.

85. In 2006, ISO drafted a new endorsement, CP 01 40 07 06, acknowledging that

claims for business interruption losses would be filed under existing policy language for losses

resulting from the presence of disease-causing agents. Endorsement CP 01 40 07 06, which other

insurers have since incorporated in policies, provides that the insurer “will not pay for loss or

damage caused by or resulting from any virus, bacterium or other microorganism that induces or

is capable of inducing physical distress, illness or disease.” Significantly, Cincinnati did not

include this endorsement in Plaintiff’s Policy.

86. Plaintiff’s Policy does not contain any exclusion which would apply to allow

Cincinnati to deny coverage for losses caused by SARS-CoV-2 and related actions of civil

authorities taken in response to SARS-CoV-2.

87. Accordingly, because the Policy is an all-risk policy and does not specifically


24

exclude the losses that Plaintiff has suffered, those losses are covered.

88. Additionally, under the Policy, Cincinnati also promised to cover “Extended

Business Income.” This coverage requires Cincinnati to pay for loss of business income beyond

the Period of Restoration under certain conditions.

89. Coverage for Extended Business Income Coverage is provided in the property

coverage form, with the following grant provisions:

(6) Extended Business Income (a) For "Business Income" Other Than “Rental Value”, if the

necessary “suspension” of your “operations” produces a “Business Income” or Extra Expense “loss” payable under this Coverage Part, we will pay for the actual loss of “Business Income” you sustain and Extra Expense you incur during the period that: 1) Begins on the date property (except “finished stock”)

is actually repaired, rebuilt or replaced and “operations” are resumed; and

2) Ends on the earlier of: a) The date you could restore your “operations”,

with reasonable speed, to the level which would generate the business income amount that would have existed if no direct “loss” had occurred; or

b) 60 consecutive days after the date determined in b.(6)(a)1) above.

However, Extended Business Income does not apply to loss of “Business Income” sustained or Extra Expense incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the “premises” are located. Loss of “Business Income” must be caused by direct “loss” at the “premises” caused by or resulting from any Covered Cause of Loss.

* * * (FM 101 05 16, at p. 29). 90. Further, the Illinois Business Income endorsement provides additional, separate


25

Civil Authority coverage.

c. Extended Business Income (1) “Business Income” Other Than “Rental Value”

If the necessary “suspension” of your “operations” produces a “Business Income” loss payable under this Coverage Part, we will pay for the actual loss of “Business Income” you sustain during the period that: (a) Begins on the date property (except “finished stock”)

is actually repaired, rebuilt or replaced and “operations” are resumed; and

(b) Ends on the earlier of: (i) The date you could restore your “operations",

with reasonable speed, to the level which would generate the “Business Income” amount that would have existed if no direct “loss” had occurred; or

(ii) 60 consecutive days after the date determined in c.(1)(a) above.

However, Extended Business Income does not apply to loss of “Business Income” sustained as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the “premises” are located. Loss of “Business Income” must be caused by direct “loss” at the “premises” caused by or resulting from any Covered Cause of Loss.

* * * (FA 213 05 16 at 3).

The Property Damage Loss

91. The scientific community and those personally and professionally affected by the

virus recognize SARS-CoV-2 as a cause of real physical loss and damage. Recently, the

Pennsylvania Supreme Court likewise found that the COVID-19 pandemic constitutes a “natural

disaster,” namely because, like other identified natural disasters, it involves “substantial damage

to property, hardship, suffering or possible loss of life.” Friends of Danny DeVito, et al. v. Tom

Wolf, Governor, et al., No. 68 MM 2020, 21 n.11, 2020 WL 1847100, at *10 n.11 (Pa. Apr. 13,


26

2020). The Pennsylvania Supreme Court found that any affected business location is within such

a “disaster area” and has sustained property damage because COVID-19 is “spread by person-to-

person contact, . . . has an incubation period of up to fourteen days, . . . can live on surfaces for up

to four days and can remain in the air within confined areas and structures.” Id. 68 MM 2020, at

29; 2020 WL 1847100, at *13. Thus, the Court rejected an argument that COVID-19 must be

detected at a specific location for that location to fall within the scope of the disaster area. Id.

92. At the time each of the Closure Orders were issued, civil authorities had confirmed

that properties and premises throughout the State of Illinois contained SARS-CoV-2 particles on

surfaces and items of property.

93. Other governmental authorities and public health officials around the country have

similarly acknowledged that the spread of SARS-CoV-2 causes direct physical loss and damage

to property. For example:

a. The State of Colorado issued a public health order indicating that “COVID-19 … physically contributes to property loss, contamination, and damage…” (Emphasis added);

b. The City of New York issued an emergency executive order in response to

COVID-19 and the pandemic, in part “because the virus physically is causing property loss and damage.” (Emphasis added);

c. Broward County, Florida issued an emergency order acknowledging that

COVID-19 “is physically causing property damage.” (Emphasis added); d. The State of Washington issued a stay at home proclamation stating the

“COVID-19 pandemic and its progression … remains a public disaster affecting life, health, [and] property…” (Emphasis added);

e. The State of Indiana issued an executive order recognizing that COVID-19

has the “propensity to physically impact surfaces and personal property.” (Emphasis added);

f. The City of New Orleans issued an order stating “there is reason to believe

that COVID-19 may spread amongst the population by various means of exposure, including the propensity to attach to surfaces for prolonged period


27

of time, thereby spreading from surface to person and causing property loss and damage in certain circumstances.” (Emphasis added);

g. The State of New Mexico issued a public health order acknowledging the

“threat” COVID-19 “poses” to “property.” (Emphasis added); h. North Carolina issued a statewide executive order in response to the

COVID-19 pandemic not only “to assure adequate protection for lives,” but also to “assure adequate protection of… property.” (Emphasis added); and

i. The City of Los Angeles issued an order in response to COVID-19

“because, among other reasons, the COVID-19 virus can spread easily from person to person and it is physically causing property loss or damage due to its tendency to attach to surfaces for prolonged periods of time.” (Emphasis added).

j. Napa County, California issued an order in response to the COVID-19

pandemic “based on evidence of increasing occurrence of COVID-19 throughout the Bay Area, increasing the likelihood of occurrence of COVID-19 within the County, and the physical damage to property caused by the virus.” (Emphasis added).

94. As these orders all recognize, the presence of people infected with or carrying

SARS-CoV-2 particles throughout the state in places like Plaintiff’s insured premises, where

public gatherers typically socialize, eat, drink, or use for entertaining or other recreation renders

those places unsafe and unusable. The Orders of the civil authorities, including the Closure Orders,

were issued in direct response to these existing dangerous physical conditions.

95. The continuous presence of SARS-CoV-2 on and around Plaintiff’s premises has

rendered the premises uninhabitable, unsafe and unfit for their intended use and therefore caused

covered, direct physical damage and/or direct physical loss under Plaintiff’s policy, and the

policies of the other Class members, by denying use of and damaging the covered property, and

causing a necessary suspension of operations during a period of restoration.

96. Executive Order 2020-07 was issued in direct response to the dangerous physical

conditions caused by the presence of SARS-CoV-2, and prohibited the public from accessing


28

Plaintiff’s tavern, thereby causing the necessary suspension of its operations and triggering the

Civil Authority coverage under the Policy. Executive Order 2020-07 specifically states, “the

Illinois Department of Public Health recommends Illinois residents avoid group dining in public

settings, such as in bars and restaurants, which usually involves prolonged close social contact

contrary to recommended practice for social distancing,” and that “frequently used surfaces in

public settings, including bars and restaurants, if not cleaned and disinfected frequently and

properly, also pose a risk of exposure.”

97. Governor Pritzker’s March 20, 2020 Closure Order (Executive Order 2020-10)

closing all “non-essential” businesses in Illinois, including all restaurants and bars, likewise was

made in direct response to the continued and increasing presence of the coronavirus on property

or around Plaintiff’s premises.

98. Like the March 15, 2020 Closure Order, the March 20, April 1 and April 30 Closure

Orders prohibited the public from accessing Plaintiff’s tavern, thereby causing the necessary

suspension of its operations.

99. The Closure Orders prohibiting public access to the covered premises and the

surrounding area were issued in response to dangerous physical conditions and caused a

suspension of business operations on the covered premises.

100. The presence of SARS-CoV-2 caused direct physical loss of and/or damage to the

covered premises under the Policy by, among other things, damaging the property, denying access

to the property, preventing customers from physically occupying the property, causing the property

to be physically uninhabitable by customers, causing its function to be nearly eliminated or

destroyed, and/or causing a suspension of business operations on the premises.

101. As a result of the Closure Orders, the Plaintiff has suffered substantial losses and


29

incurred significant expense. As a result of the Closure Orders, issued in response to the COVID-

19 pandemic, Plaintiff and the other Class members lost Business Income and incurred Extra

Expense.

102. As a result of the presence of SARS-CoV-2, and the COVID-19 pandemic, Plaintiff

and the other Class members lost Business Income and incurred Extra Expense.

103. The covered Business Income losses and Extra Expenses incurred by Plaintiff and

owed under the Policy continues to increase. As a result of these catastrophic losses, Plaintiff has

been forced to furlough workers and ultimately may have to close its operation permanently.

104. The Closure Orders prohibited the public from accessing Plaintiff’s insured

premises described in the Policy, thereby causing the necessary suspension of operations and

triggering the Business Income, Extra Expense, and Civil Authority coverages under the Policy.

Moreover, the presence of SARS-CoV-2 on or around Plaintiff’s premises damaged property by

infecting it and rendered the premises unsafe, uninhabitable, and unfit for their intended use.

105. Upon information and belief, people carrying SARS-CoV-2 particles in, on, or

about their person, were physically present at or around Plaintiff’s insured premises during the

time the Policy was in effect.

106. Upon information and belief, SARS-CoV-2 particles have been physically present

at or around Plaintiff’s insured premises—both airborne and on surfaces and items of property at

or around Plaintiff’s premises—during the time the Policy was in effect and remained physically

present for up to 28 days.

107. Plaintiff has sustained direct physical loss and damage to items of property located

at its premises and direct physical loss and damage to the premises described in the Policy as a

result of the presence of SARS-CoV-2 particles and/or the COVID-19 pandemic.


30

108. The presence of SARS-CoV-2 caused direct physical loss of and/or damage to the

premises insured under the Policy by, among other things, damaging the property, denying access

to the property, preventing customers from physically occupying the property, causing the property

to be physically uninhabitable by customers, causing its function to be nearly eliminated or

destroyed, and/or causing a suspension of business operations on the premises.

Governmental Action Resulted In A Non-Excluded Loss 109. As reflected in the promulgation by ISO of the virus exclusion in 2006, and related

statements by the industry when seeking regulatory approval, insurance industry has thus

recognized since 2006 that the presence of virus can constitute damage to property.

110. SARS-CoV-2, a non-excluded Covered Cause of Loss-has been found present on

or within property other than covered premises, damaging those properties.

111. The Policy does not define the term “damage.” According to the Oxford English

Dictionary, in common usage “damage” means “[p]hysical harm caused to something in such a

way as to impair its value, usefulness, or normal function.”28 Black’s Law Dictionary supplies a

related definition: “(1) Loss or injury to person or property; esp., physical harm that is done to

something or to part of someone’s body. (2) By extension, any bad effect on something.”29

112. SARS-CoV-2 alters the physical landscape of the surfaces on which it is present,

rendering those surfaces impure and consequently impairing their value and usefulness. While

SARS-CoV-2 may be smaller and less visible than rust, mold, or paint, the virus has mass and is

necessarily physical in nature, traveling to other objects and causing harm.

113. Moreover, access to the area surrounding that damaged property has been

28 “Damage.” Lexico.com, Oxford English Dictionary,

https://www.lexico.com/en/definition/damage. 29 “Damage,” Black's Law Dictionary (11th ed. 2019).


31

prohibited by civil authority as a result of the damage from SARS-CoV-2, as described herein.

114. The Civil Authority provisions further require that the governmental actions are

“taken in response to dangerous physical conditions resulting from the damage or continuation of

the Covered Cause of Loss that caused the damage.”

115. The Policy does not to define the term “dangerous physical conditions.” According

to Merriam-Webster dictionary, “Dangerous” means “(1) involving possible injury, pain, harm, or

loss ... (2) able or likely to inflict injury or harm.”30

116. The presence of SARS-CoV-2 results in conditions that are both dangerous and

physical. And by their own terms, the governmental orders described herein were entered in

response to these dangerous physical conditions resulting from the damage or continuation of

SARS-CoV-2 that caused the damage at properties other than Plaintiff’s properties.

117. One risk addressed, in part, in the exclusions is governmental action. See Policy

Form FM 101 05 16, Section A, ¶ 3.b.1.c.

118. By recognizing governmental action in the exclusions, the Policy confirms

governmental action as a risk of direct loss and a Covered Cause of Loss.

119. The Policy excludes some but not all governmental action from coverage.

Specifically, the Policy only excludes coverage for loss caused directly or indirectly by

governmental action that consists of seizure or destruction of property by order of governmental

authority unless the destruction was done to prevent the spread of a fire. As ordinarily used,

“seizure” means “taking possession of person or property by legal process.”

120. The governmental Closure Orders affecting Plaintiff’s property do not require

30 “Dangerous.” Merriam-Webster.com Dictionary, Merriam-Webster,

https://www.meriamwebster.com/dictionary/dangerous.


32

seizure or destruction because the government did not destroy or take physical possession of, or

title to, such property. Instead, the Closure Orders limited access to and use of covered property at

the premises described in the Policy’s declarations.

121. Therefore, the Policy does not exclude the governmental actions described herein.

122. The business-income losses, extra expenses, and other losses were caused by or

resulted from the aforementioned governmental orders, a Covered Cause of Loss.

123. The Policy further requires that the business-income losses be incurred because of

the necessary suspension of operations during the period of restoration. Plaintiff suffered losses

because of suspension of operations during the period of restoration.

124. The direct loss of physical access to and use of the premises listed in the

declarations, and business property thereon, for Plaintiff and their vendors, agents, employees, and

customers, caused the suspension of the Plaintiff’s operations.

125. Such direct losses are also accidental. Accidental means “occurring unexpectedly

or by chance.”31 The Governmental Closure Orders were issued through no fault of Plaintiff and

were in no way expected by Plaintiff or other insureds entering into insurance policies with

Cincinnati prior to the COVID-19 pandemic.

126. Because the Policy covers all risks, including governmental action that, for the good

of the public, does no more than limit physical access to and use of property (real and personal),

coverage is required.

Cincinnati Did Not Include A Virus Or Pandemic Exclusion In the Policy

127. Nothing in the Policy excludes or limits coverage for viruses or virus-related causes

31 “Accidental.” Merriam-Webster.com Dictionary, Merriam-Webster,

https://www.merriamwebster.com/dictionary/accidental.


33

of loss.

128. As the Policy makes clear, Cincinnati, as the drafter of the Policy, relied on

materials generated by ISO in drafting Plaintiff’s Policy. ISO is an entity that drafts standard policy

language for industry use in insurance contracts.

129. ISO and insurance providers like Cincinnati became aware of the possibility of

virus-related causes during multiple prior health-related crises, including: the 2002 SARS

epidemic, 2009 H1N1 swine flu pandemic, 2012 MERS epidemic, 2014 Ebola epidemic, and the

2016 Zika epidemic, among others.

130. In 2006, after the SARS epidemic, ISO drafted a new endorsement, CP O 1 40

07 06, entitled “Exclusion of Loss Due to Virus or Bacteria,” acknowledging that claims for

business interruption losses could be filed under existing policy language for losses resulting from

pandemics or the presence of disease-causing agents. This new endorsement, which other

insurance providers have since incorporated in policies, provides that the insurer “will not pay for

loss or damage caused by or resulting from any virus, bacterium or other microorganism that

induces or is capable of inducing physical distress, illness or disease.”

131. Despite the widespread recognition of virus-related causes, and the ISO’s

publication of a new endorsement memorializing an express virus exclusion, Cincinnati did not

include a virus exclusion in Plaintiff’s Policy. Under Plaintiff’s “all risks” Policy, therefore,

constitutes a Covered Cause of Loss.

132. Likewise, Plaintiff’s Policy does not exclude from the commercial property

coverage losses arising from governmental orders restricting access to Plaintiff’s premises and

Plaintiff’s business operations due to viruses, viral-related causes or pandemics.

133. No other applicable exclusions or limitations apply to preclude coverage for the


34

direct losses caused by or resulting from the governmental actions described herein.

Cincinnati Has Not Paid, And Has No Intention Of Paying, Plaintiff’s Claims For Coverage

134. On information and belief, Cincinnati has, on a uniform and widescale basis,

refused to pay, under its Business Income and Extra Expense coverages and Civil Authority

coverages, for losses sustained due to the presence of SARS-CoV-2 and/or related to action of

civil authority in response to the COVID-19 pandemic.

135. While representing to its insureds that it will diligently investigate business

interruption claims connected to the COVID-19 pandemic, Cincinnati has told investors the truth:

it has no intention to honor, and it will not honor any such claims.

136. Specifically, in its 10-Q filing for the first quarter of 2020, Cincinnati stated:

Virtually all of our commercial property policies do not provide coverage for business interruption claims unless there is direct physical damage or loss to property. Because a virus does not produce direct physical damage or loss to property, no coverage exists for this peril - rendering an exclusion unnecessary. For this reason, most of our standard market commercial property policies in states where we actively write business do not contain a specific exclusion for COVID-19. While we will evaluate each claim based on the specific facts and circumstances involved, our commercial property policies do not provide coverage for business interruption claims unless there is direct physical damage or loss to property.32

137. On or about March 20, 2020, Plaintiff timely submitted a claim to Cincinnati for its

covered loss.

138. Contrary to the plain language of the Policy, and to Cincinnati’s corresponding

promises and contractual obligations, Cincinnati refused to pay for Plaintiff’s covered losses and

expenses.

32 Form 10-Q, Cincinnati Financial Corporation (filed Apr. 27, 2020), available at

https://cincinnatifinancialcorporation.gcs-web.com/static-files/787fd5db-ee48-474b-98bl- 4d7186fa8fb5.


35

139. On or about April 15, 2020, without conducting any meaningful investigation or

significant follow up inquiry concerning Plaintiff’s claim, or related loss, Cincinnati issued a letter

denying Plaintiff’s claim. (See Exhibit B).

140. As the 10-Q and letter make clear, Cincinnati’s premeditated strategy is to deny all

claims related to SARS-CoV-2 and the COVID-19 pandemic.

141. Given Cincinnati's intention to issue categorical denials of all claims related to

SARS-CoV-2 and the COVID-19 pandemic, it is no surprise that Cincinnati failed to evaluate

Plaintiff’s claims based on all information that could be gathered from a fair and neutral

individualized investigation. Cincinnati further failed to review ample publicly available and

easily-accessible information regarding the claims, and failed to secure an outside counsel opinion

on coverage to avoid bias. Cincinnati has made no indication that it has visited or plans to visit any

of the covered locations.

142. Cincinnati’s letter further misstates policy terms and engineers new post-hoc

requirements for coverage (including, for example, requiring “direct physical loss or direct

physical damage ... to property at the covered premises," rather than the requirement as stated in

the Policy that “direct 'loss” cause the suspension). Cincinnati’s letters also quote at length

numerous provisions from the Policy themselves, but with no meaningful explanation or analysis.

143. Plaintiff, on the other hand, satisfied all duties under the Policy and the law.

144. Cincinnati's repudiation of the insurance contracts that Plaintiff purchased to

protect its business and employees is unlawful. The governmental actions affecting Plaintiff’s

property have caused a loss of income and an increase in expense. This risk of governmental action

is nowhere limited or excluded in the Policy.


36

CLASS ACTION ALLEGATIONS 145. Plaintiff brings this action pursuant to Rules 23(a), 23(b)(1), 23(b)(2), 23(b)(3), and

23(c)(4) of the Federal Rules of Civil Procedure, individually and on behalf of all others similarly

situated. This action satisfies the numerosity, commonality, typicality, adequacy, predominance,

and superiority requirements of those provisions.

146. The class claims all derive directly from a single course of conduct by Cincinnati:

its systematic and uniform refusal to pay insureds for losses suffered due to the COVID-19

pandemic and the related actions taken by civil authorities to suspend business operations

147. Plaintiff seeks to represent a Class defined as:

All persons and entities that: (a) had Business Income coverage, Extra Expense coverage, or Civil Authority Coverage, under a property insurance policy issued by Cincinnati; (b) suffered a suspension of business related to the presence or threat of SARS-CoV-2, and/or actions of any civil authority in response to the COVID-19 pandemic, at the premises covered by their Cincinnati property insurance policy; (c) made a claim under their policy issued by Cincinnati for loss of business income and/or expenses to minimize the suspension of business due to COVID-19 and/or actions of any civil authority in response to COVID-19; and (d) as to which Cincinnati denied or has otherwise failed to acknowledge, accept as covered losses or expenses, or pay for the covered losses or expenses.

The following people are excluded from the Class: (1) any Judge or Magistrate presiding over this

action and the members of their family; (2) Defendant, Defendant’s agents, subsidiaries, parents,

successors, predecessors, and any entity in which Defendant or its parents have a controlling

interest, and those entities’ current and former employees, officers, and directors; (3) persons who

properly execute and file a timely request for exclusion from the Class; (4) persons whose claims

in this matter have been finally adjudicated on the merits or otherwise released; (5) Plaintiff’s

counsel and Defendant’s counsel; and (6) the legal representatives, successors, and assigns of any

such excluded persons.

148. This action can be maintained as a class action because there is a well-defined


37

community of interest in the litigation and the proposed Class is easily ascertainable.

149. Numerosity: The members of the Class are so numerous that joinder of all

members is impracticable. The exact number of members of the Class is unknown, but the Class

likely consists of thousands of members. Members of the Class can be easily identified through

Defendant’s records.

150. Commonality and Predominance: This action involves common questions of

law and fact applicable to each class member that predominate over questions that affect only

individual class members. Thus, proof of a common set of facts will establish the right of each

class member to recover. Questions of law and fact common to the claims of the Plaintiff and

members of the putative Class, which predominate over any individual issues, include, among

others:

a. Whether Cincinnati issued all-risk insurance policies to Plaintiff and

members of the Class in exchange for payment of premiums by Plaintiff

and the Class members;

b. Whether Plaintiffs and the Class suffered a covered loss based on the

common policies issued to Plaintiff and members of the Class;

c. Whether SARS-CoV-2 causes direct physical loss or damage to property;

d. Whether Cincinnati’s Business Income and Extra Expense coverage applies

to a suspension of business related to SARS-CoV-2 and the COVID-19

pandemic;

e. Whether the Closure Orders constitute “action[s] of civil authority”;

f. Whether Cincinnati’s Civil Authority coverage applies to a loss of Business

Income caused by the actions of any civil authority requiring the suspension


38

of business related to SARS-CoV-2 and the COVID-19 pandemic;

g. Whether Cincinnati’s Extra Expense coverage applies to efforts to minimize

a loss caused by SARS-CoV-2 and the COVID-19 pandemic and/or the

actions of any civil authority requiring the suspension of business related to

SARS-CoV-2 and the COVID-19 pandemic;

h. Whether Cincinnati’s wrongfully denied all claims based on loss caused by

SARS-CoV-2 and the COVID-19 pandemic;

i. Whether Cincinnati’s wrongfully denied all claims based on loss caused by

the actions of any civil authority requiring the suspension of business related

to SARS-CoV-2 and the COVID-19 pandemic;

j. Whether Cincinnati has breached its contracts of insurance through a

blanket denial of all claims based on business interruption, income loss or

closures related to SARS-CoV-2, the COVID-19 pandemic and/or the

related actions of any civil authority requiring the suspension of business

related to SARS-CoV-2 and the COVID-19 pandemic;

k. Whether Cincinnati has breached its covenant of good faith and fair dealing

through a blanket denial of all claims based on business interruption,

income loss or closures related to SARS-CoV-2, the COVID-19 pandemic

and/or the related actions of any civil authority requiring the suspension of

business related to SARS-CoV-2 and the COVID-19 pandemic; and

l. Whether Plaintiff and the Class are entitled to an award of reasonable

attorney fees, interest and costs.

151. Typicality: Plaintiff’s claims are typical of the claims of the proposed Class. All


39

claims are based on the same principal legal and factual issues in that Plaintiff and members of the

Class purchased identical insurance coverage from Cincinnati containing identical language

regarding business income losses and extra expense, their coverage claims for losses caused by

SARS-CoV-2, the COVID-19 pandemic and the resulting Closure Orders were denied by

Cincinnati, and they have sustained damages arising out of Cincinnati’s wrongful denials.

152. Adequacy of Representation: Plaintiff will fairly and adequately represent and

protect the interests of the Class, and has retained counsel competent and experienced in complex

class actions and insurance coverage matters. Neither Plaintiff nor Plaintiff’s counsel have any

interests that conflict with or are antagonistic to the interests of the Class members. Cincinnati has

no defenses unique to Plaintiff. Plaintiff and its counsel are committed to vigorously prosecuting

this action on behalf of the members of the Class, and they have the resources to do so.

153. Inconsistent or Varying Adjudications and the Risk of Impediments to Other

Class Members’ Interests: Plaintiff seeks class-wide adjudication as to the interpretation, and

resultant scope, of the Cincinnati coverage. The prosecution of separate actions by individual

members of the Class would create an immediate risk of inconsistent or varying adjudications on

this issue, which would establish incompatible standards of conduct for Cincinnati in evaluating

future claims. Moreover, the adjudications sought by Plaintiff could, as a practical matter,

substantially impair or impede the ability of other Class members, who are not parties to this action,

to protect their interests. Class treatment of common questions of law and fact would also be

superior to multiple individual actions or piecemeal litigation in that class treatment will conserve

the resources of the Court and the litigants, and will promote consistency and efficiency of

adjudication. A class action can, therefore, best secure the economies of time, effort, and expense

or accomplish the other ends of equity and justice that this action seeks to obtain.


40

154. Declaratory and Injunctive Relief: Cincinnati acted or refused to act on grounds

generally applicable to Plaintiff and the other members of the Class, thereby making appropriate

final injunctive relief and declaratory relief, as described below, with respect to the members of

the Class.

155. Superiority: A class action is superior to other available methods for the fair and

efficient adjudication of this controversy. Class proceedings are superior to all other available

methods for the fair and efficient adjudication of this controversy and joinder of all members of

the Class is impracticable. The prosecution of separate actions by individual members of the Class

would impose heavy burdens upon the courts and would create a risk of inconsistent or varying

adjudications of the questions of law and fact common to the Class. By contrast, a class action

presents far fewer management difficulties and provides the benefits of single adjudication,

economy of scale, and comprehensive supervision by a single court. Economies of time, effort,

and expense will be fostered and uniformity of decisions will be ensured.

156. Plaintiff and Plaintiff’s counsel are unaware of any difficulties that are likely to be

encountered in the management of this action that would preclude its maintenance as a class action.

COUNT I (Declaratory Judgment)

157. Plaintiff adopts and incorporates by reference paragraphs 1-156 of this Complaint

as if fully set forth herein.

158. Plaintiff’s Policy, as well as those of other members of the Class, are insurance

contracts for which Cincinnati was paid premiums in exchange for its promise to pay Plaintiff’s

and the Class’ losses for claims covered by the Policy.

159. Plaintiff and other members of the Class have complied with all applicable terms,

conditions and provisions of the Policy and/or those terms, conditions and provisions have been


41

waived by Cincinnati, or Cincinnati is estopped from asserting them.

160. Coverage under the Policy is provided for any risk of direct loss unless expressly

limited or excluded.

161. Cincinnati agreed to pay for its insureds’ actual loss of Business Income sustained

and Extra Expense incurred by Plaintiff due to the necessary suspension of operations during a


162. Cincinnati also promised to pay for the loss of Business Income and necessary Extra

Expense sustained by Plaintiff that is “caused by action of civil authority that prohibits access” to

Plaintiff’s insured premises.

163. SARS-CoV-2 caused direct physical loss and damage to Plaintiff’s and the other

Class members’ Covered Properties, requiring suspension of operations at the Covered Properties.

Loss of access to and/or loss of ability to use property also constitutes direct physical loss or

damage, triggering coverage. Losses caused by SARS-CoV-2, and the COVID-19 pandemic, thus

triggered the Business Income and Extra Expense provisions of Plaintiff’s and the other Class

members’ insurance policies.

164. The Executive Orders by state and local civil authorities were issued in direct

response to the COVID-19 outbreak and the physical presence of SARS-CoV-2 on property on or

around covered premises, forcing closure of premises to the public and curtailment of business

operations.

165. Cincinnati did not include an exclusion for loss caused by a virus or a pandemic in

the Policy. Nor do any of the exclusions in the Policy preclude coverage for the governmental

orders restricting access to Plaintiff’s premises and Plaintiff’s business operations due to viruses,

viral-related causes or pandemics, pursuant to which Plaintiff closed its premises to the public and


42

suspended its regular business operations.

166. Due to the presence of SARS-CoV-2, and the COVID-19 pandemic, Plaintiff and

the other members of the Class suffered a loss of Business Income and have incurred Extra

Expense.

167. Cincinnati has arbitrarily and without justification refused to reimburse Plaintiff

and members of the Class for any losses incurred by them related to the necessary interruption of

their businesses stemming from SARS-CoV-2, the COVID-19 pandemic and the related Closure

Orders.

168. Cincinnati has denied claims stemming from SARS-CoV-2, the COVID-19

pandemic and the related Closure Orders on a uniform and class wide basis, without individual

bases or investigations, such that the Court can render declaratory judgment.

169. An actual case or controversy exists regarding Plaintiff’s and the Class’ rights and

Cincinnati’s obligations under the Policy to reimburse Plaintiff and the Classes for the full amount

of losses and extra expenses incurred by Plaintiff and the Class in connection with the suspension

of their businesses stemming from SARS-CoV-2, the COVID-19 pandemic and the related Closure

Orders.

170. Pursuant to 28 U.S.C. § 2201, Plaintiff and the Class seek a declaratory adjudging

and judgment from this Court declaring the following:

a. Plaintiff’s and the Class’ losses incurred in connection with the necessary

suspension of their businesses stemming from SARS-CoV-2, the COVID-19

pandemic and the related Closure Orders are insured losses under the policies;

b. Cincinnati has waived any right it may have had to assert defenses to coverage or

otherwise seek to bar or limit coverage for Plaintiff’s and the Class’ losses by


43

issuing blanket coverage denials without conducting claim investigations as

required under Illinois law; and

c. Cincinnati is obligated to pay Plaintiff and the Class for the full amount of the losses

and extra expenses incurred and to be incurred in connection with the covered

business losses related to the Closure Orders during period of restoration and the

necessary with the necessary suspension of their businesses stemming from SARS-

CoV-2, the COVID-19 pandemic and the related Closure Orders.

COUNT II (Breach of Contract)



172. Plaintiff’s Policy, as well as those of other members of the Class, are insurance

contracts for which Cincinnati was paid premiums in exchange for its promise to pay Plaintiff’s

and the Class’ losses for claims covered by the Policy.

173. Plaintiff and other members of the Class have complied with all applicable terms,

conditions and provisions of the Policy and/or those terms, conditions and provisions have been

waived by Cincinnati, or Cincinnati is estopped from asserting them.

174. Coverage under the Policy is provided for any risk of direct loss unless expressly

limited or excluded.

175. Cincinnati agreed to pay for its insureds’ actual loss of Business Income sustained

and Extra Expense incurred by Plaintiff due to the necessary suspension of operations during a


176. Cincinnati also promised to pay for the loss of Business Income and necessary Extra

Expense sustained by Plaintiff that is “caused by action of civil authority that prohibits access” to


44

Plaintiff’s insured premises.

177. SARS-CoV-2 caused direct physical loss and damage to Plaintiff’s and the other

Class members’ Covered Properties, requiring suspension of operations at the Covered Properties.

Loss of access to and/or loss of ability to use property also constitutes direct physical loss or

damage, triggering coverage. Losses caused by SARS-CoV-2, and the COVID-19 pandemic, thus

triggered the Business Income and Extra Expense provisions of Plaintiff’s and the other Class

members’ insurance policies.

178. The Executive Orders by state and local civil authorities were issued in direct

response to the COVID-19 outbreak and the physical presence of SARS-CoV-2 on property on or

around covered premises, forcing closure of premises to the public and curtailment of business

operations.

179. Cincinnati did not include an exclusion for loss caused by a virus or a pandemic in

the Policy. Nor do any of the exclusions in the Policy preclude coverage for the governmental

orders restricting access to Plaintiff’s premises and Plaintiff’s business operations due to viruses,

viral-related causes or pandemics, pursuant to which Plaintiff closed its premises to the public and

suspended its regular business operations.

180. Due to the presence of SARS-CoV-2, and the COVID-19 pandemic, Plaintiff and

the other members of the Class suffered a loss of Business Income and have incurred Extra

Expense.

181. By denying coverage for Business Income and Extra Expense losses incurred by

Plaintiff and members of the Class, related to SARS-CoV-2, the COVID-19 pandemic and the

related Closure Orders, Cincinnati has repudiated its contract and breached its coverage obligations


45

under its Policy.

182. As a result of Cincinnati’s breaches of its policies, Plaintiff and the other Class

members have sustained substantial damages for which Cincinnati is liable, in an amount to be

established at trial.

COUNT III (Breach of the Duty of Good Faith and Fair Dealing)



184. Good faith is an element of the contract that Plaintiff and the Class entered into

with Defendant in obtaining insurance coverage. Whether by common law or statute, all such

contracts impose upon each party a duty of good faith and fair dealing. Good faith and fair dealing,

in connection with executing contracts and discharging performance and other duties according to

Their terms, means preserving the spirit—not merely the letter—of the bargain.

185. Put differently, the parties to a contract are mutually obligated to comply with the

substance of their contract in addition to its form. Evading the spirit of the bargain and abusing the

power to specify terms constitute examples of bad faith in the performance of contracts.

186. Plaintiff and the Class performed all their obligations under their contracts with

Cincinnati.

187. Cincinnati breached the covenant of good faith and fair dealing by purposefully

mischaracterizing provisions of its insurance coverage agreements so as to not honor its contractual

duties to Plaintiff and the Class under those agreements.

188. Plaintiff and the Class have sustained damages as a result of Defendant’s breaches

of the covenant of good faith and fair dealing in an amount to be proven at trial.


46

COUNT IV (Statutory Bad Faith Denial of Insurance Under 215 ILCS 5/155)



190. Upon receipt of the claims by Plaintiff and other members of the Class related to

SARS-CoV-2, the COVID-19 pandemic and the related Closure Orders, Cincinnati denied the

claims without conducting any investigation, let alone a “reasonable investigation based on all

available information” as required under Illinois law. See 215 ILCS 5/154.6.

191. Cincinnati’s denials of claims by Plaintiff and other members of the Class related

to SARS-CoV-2, the COVID-19 pandemic and the related Closure Orders were vexatious and

unreasonable.

192. Cincinnati’s denials constitute “improper claims practices” under Illinois law—

namely Cincinnati’s (1) refusals to pay Plaintiff’s and the Class members’ claims without

conducting reasonable investigations based on all available information and (2) failure to provide

reasonable and accurate explanations of the bases in its denials. See 215 ILCS 5/154.6 (h), (n).

193. Therefore, pursuant to 215 ILCS 5/155, Plaintiff requests that, in addition to

entering a judgment in favor of Plaintiff and the Class and against Cincinnati for the amount owed

under the policies at the time of judgment, the Court also enter a judgment in favor of Plaintiff

and the Class against Cincinnati for an amount equal to the greater of (1) 60% of the amount which

the trier of fact finds that Plaintiff and the Class are entitled to recover under the policies, exclusive

of costs; and (2) $60,000 per Class member. See 215 ILCS 5/155.

194. Plaintiff further requests that the Court enter a judgment in favor of Plaintiff and

the Class, and against Cincinnati in an amount equal to the attorneys’ fees and costs incurred by

Plaintiff for the prosecution of this coverage action against Cincinnati, which amount will be


47

proved at or after trial, pursuant to 215 ILCS 5/155.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff, individually and on behalf of the other members of the Class,

respectfully requests that the Court enter an Order as follows:

A. Finding that this action satisfies the prerequisites for maintenance as a class action,

and certifying the Class defined herein.

B. Designating Plaintiff as representative of the Class, and its undersigned counsel as

Class Counsel.

C. Entering declaratory judgment in favor of Plaintiff and the Class, and against

Cincinnati, on Count I, and declaring as follows:

1. Plaintiff’s and the Class’ losses incurred in connection with the necessary

suspension of their businesses stemming from SARS-CoV-2, the COVID-19

pandemic and the related Closure Orders are insured losses;

2. Cincinnati has waived any right it may have had to assert defenses to

coverage or otherwise seek to bar or limit coverage for Plaintiff’s and the Class’

losses by issuing blanket coverage denials without conducting claim investigations

as required under Illinois law; and

3. Cincinnati is obligated to pay Plaintiff and the Class for the full amount of

the losses and extra expenses incurred and to be incurred in connection with the

covered business losses related to the necessary suspension of their businesses

stemming from SARS-CoV-2, the COVID-19 pandemic and the related Closure

Orders.

D. Entering judgment in favor of Plaintiff and the Class, and against Cincinnati, on


48

Count II, finding Cincinnati breached its contracts of insurance, and awarding

damages for that breach of contract in an amount to be established at trial.

E. Entering judgment in favor of Plaintiff and the Class, and against Cincinnati, on

Count III, finding Cincinnati breached the covenant of good faith and fair dealing

in its contracts of insurance, and awarding damages for that breach in an amount to

be established at trial.

F. Entering judgment in favor of Plaintiff and the Class, and against Cincinnati, on

Count IV, finding Cincinnati acted in bad faith, and awarding damages in the

amount equal to the greater of (1) 60% of the amount which the trier of fact finds

that Plaintiff and the Class are entitled to recover under the policies, exclusive of

costs; and (2) $60,000 per Class member.

G. Entering judgment in favor of Plaintiff and the Class, and against Cincinnati, in an

amount equal to all attorney fees and related costs, to be established at the

conclusion of this action, incurred for the prosecution of this coverage action

against Cincinnati, pursuant to 215 ILCS 5/155.

H. Awarding to Plaintiff and the Class pre- and post- judgment interest, to the fullest

extent allowable.

I. Awarding to Plaintiff and the Class any such further relief as may be just and

proper.

DEMAND FOR JURY TRIAL

Plaintiff demands a jury trial for all issues so triable.


49

Respectfully submitted,

T&E CHICAGO LLC, individually, and on behalf of all others similarly situated,

By: /s/ Jeffrey A. Berman One of its Attorneys Jeffrey A. Berman Ryan M. Kelly Patrick J. Solberg ANDERSON + WANCA 3701 Algonquin Road, Suite 500 Rolling Meadows, IL 60008 Telephone: 847/368-1500 Fax: 847/368-1501

Counsel for the Plaintiff and the Class


EXHIBIT A

Case: 1:20-cv-04001 Document #: 1-1 Filed: 07/08/20 Page 1 of 236 PageID #:50

IA 4443 04 14

The Cincinnati Insurance CompanyThe Cincinnati Casualty Company

The Cincinnati Indemnity Company

Policy Number:

Effective Date:

Named Insured:

For professional advice and policy questions or changes, please contact your local independent agency:

Dear Policyholder:

Thank youThank you for trusting The Cincinnati Insurance Companies with your commercial insurance coverage. We recognize that locally based independent agents have the working knowledge to help you choose the right insurance company for your needs. Together with your local independent insurance agency, we are committedto providing you with the highest level of service.

Please review your enclosed policy information to verify your coverage details, as well as deductibles andcoverage amounts. Should your needs change, your agent is available to review and update your policy.

Please promptly report claimsIf you experience a policy-related loss, you may report it by contacting your local professional independentagency representing The Cincinnati Insurance Companies or by directly calling us toll-free at 877-242-2544and providing your policy number and claim-related information.

Sincerely,

Sean M. GivlerSenior Vice President - Commercial Lines

EPP 049 72 16

07-20-2019

T & E CHICAGO LLC/NAVIGATOR TAP ROOM C/O ERIK SWANSON

CFM INSURANCE50 N BROCKWAY ST STE 5-2PALATINE, IL 60067-5091

847-934-0200


IA 4407 03 13

NOTICE TO POLICYHOLDERSDIRECT BILL ACCOUNT CREDIT PROCEDURE

This is a notice of how an account credit will be applied to your policy or to all of the policies being billed assingle account.

Account Credits

A. If your account is comprised of a single policy and an endorsement or premium audit results in a credit(return premium), the credit is applied to that policy. If your account does not have a future installment due at the time the endorsement or audit is processed, the credit is refunded to the payor listed for your account. If you do not wish for credits to be automatically applied to future unpaid installments, please contact us to request a refund. Please note that the amount of the refund may vary based upon the dateyou contact us and your billing schedule.

B. If your account is comprised of more than one policy and an endorsement or premium audit results in acredit (return premium), the credit is applied in the following manner:

• Payments previously applied to your account are deferred.

• The credit that results from the endorsement or audit is applied to the policy generating the credit.

• The payments that were deferred are then reapplied to the account in order to satisfy the amountdue.

• Any excess payment that results from the credit is applied proportionately to your policies with afuture payment or installment due.

• If you do not wish for credits to be automatically applied to future unpaid installments, please contact us to request a refund. Please note that the amount of the refund may vary based upon the date youcontact us and your billing schedule.

• If your account does not have a future installment or payment due at the time the endorsement or audit is processed, the credit is refunded to the payor listed for your account.

(Does not apply to audit return premium for payors located in New York; Does not apply to premiums due more than 30 days from the date of processing for payors located in New Hampshire. These credits areautomatically refunded to the payor)

To request a refund, contact us at:

Mailing Address Toll free phone number Electronic mail

The Cincinnati Insurance Company 877-942-2455 [email protected] Box 14529Cincinnati, OH 45250-0529


IA 4421 03 13

DISCLOSURE OF DIRECT BILL FEES AND CHARGES

NO COVERAGE IS PROVIDED BY THIS DISCLOSURE, nor can it be construed to replace any provision ofyour policy. YOU SHOULD READ YOUR POLICY AND REVIEW YOUR DECLARATIONS PAGE CAREFULLY for complete information on the coverages provided.

Your insurance premium is being paid directly to us rather than to your insurance agency. We appreciate your prompt payment of the premium. Please note that these fees apply only in the event your payment is late, isreturned to us for insufficient funds, or if your policy was previously canceled for nonpayment of premium and has been reinstated at either your or your agents request. We are not required to reinstate a policy oncecancellation for nonpayment of premium has become effective. The decision to reinstate coverage is solely atthe discretion of the company.

Not all fees are applicable in all states. The types of fees are listed below. Following the description of each fee, we list the states where the fee applies and the amount of the fee. Fees are not levied in KY, MD, MT and NC.

Non-Sufficient Funds (NSF) Charge: The first time a premium payment is returned due to Non-Sufficient Funds (NSF), the premium due is the installment amount. For each succeeding return of payment while continuously insured with The Cincinnati Insurance Companies, a charge is added to your next accountstatement. The amount of the charge is determined by the fees filed with and approved by the state where thepayor of your account is located.

$10 AK, FL, NJ, RI, and SC;

$15 MA;

$20 NY; and

$25 AL, AZ, AR, CA, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, LA, ME, MI, MN, MS, MO, NE, NV, NH, NM, ND, OH, OK, OR, PA, SD, TN, TX, UT, VT, VA, WA, WI, WV and WY.

Reinstatement Charge: The first time your account is reinstated for nonpayment of premium, the premiumdue is the installment amount. For each succeeding reinstatement due to nonpayment of premium whilecontinuously insured with The Cincinnati Insurance Companies, a charge is added to your next accountstatement. The amount of the charge is determined by the fees filed with and approved by the state where the payor of your account is located.

$10 AK, RI, and SC;

$15 MA;

$20 NY; and

$25 AL, AZ, AR, CA, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, LA, ME, MI, MN, MS, MO, NE, NV, NH, NM,ND, OH, OK, OR, PA, SD, TN, TX, UT, VT, VA, WA and WY.

Late Charge: A charge is added to your next account statement each time your payment is received andprocessed after the due date as shown on the account statement. This fee will not apply to Electronic Funds Transfer (EFT). The amount of the charge is determined by the fees filed with and approved by the state wherethe payor of your account is located.

$10 AK, FL, RI, and SC;

$15 MA; and

$25 AL, AZ, AR, CA, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, LA, ME, MI, MN, MS, MO, NE, NV, NH, NM, ND, OH, OK, OR, PA, SD, TN, TX, UT, VT, VA, WA, WI and WY.


The Cincinnati Insurance CompanyA Stock Insurance Company

Headquarters: 6200 S. Gilmore Road, Fairfield, OH 45014-5141Mailing address: P.O. Box 145496, Cincinnati, OH 45250-5496

www.cinfin.comn 513-870-2000

COMMON POLICY DECLARATIONS

POLICY NUMBER

NAMED INSURED

ADDRESS(Number & Street,Town, County,State & Zip Code)

Previous Policy Number:

Billing Method:DIRECT BILL EFTEPP 049 72 16 / EBA 049 72 16

T & E CHICAGO LLC/NAVIGATOR TAP ROOM C/O ERIK SWANSON2211 N MILWAUKEE AVE STE 100CHICAGO, IL 60647-2063

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CFM INSURANCE 12-245PALATINE, IL

EPP 049 72 16

LIMITED LIABILITY COMPANY

07-20-2019 07-20-2022

EBA 049 72 16 07-20-2019 07-20-2020

OOLICY.S POTHIATDE T PROU TYIE AG, ED IN HE INSURANCE AS STL

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TOTECT S TOTHE F R ERMHE PREMIUM, HE TRET L SUBJURN

FORMS APPLICABLE TO ALL COVERAGE PARTS:COMMON POLICY CONDITIONSIL0017 11/98SUMMARY OF PREMIUMS CHARGEDIA102A 09/08SCHEDULE OF LOCATIONSIA904 04/04POLICYHOLDER NOTICE TERRORISM INSURANCE COVERAGEIA4236 01/15NOTICE OF LOSS CONTROL SERVICESIA4427 02/13IMPORTANT POLICYHOLDERS NOTICE - ILLINOISIA4433IL 03/17IMPORTANT INFORMATION TO POLICYHOLDERS ILLINOISIP409IL 01/91NOTICE TO POLICYHOLDERSIP446 08/01SPECIAL PER OCCURRENCE DEDUCTIBLE ENDORSEMENTIA4006 07/10ILLINOIS CHANGES - CANCELLATION AND NONRENEWALIA4156IL 01/18ILLINOIS CHANGES - CANCELLATION AND NONRENEWALIA4210IL 01/18CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISMIA4238 01/15SIGNATURE ENDORSEMENTIA4338 05/11ILLINOIS CHANGESIA4382IL 07/17ILLINOIS CHANGES - CIVIL UNIONIA4395IL 04/17NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (BROAD FORM)IL0021 11/85COMMERCIAL PROPERTY COVERAGE PART DECLARATIONSFM502 07/08COMMERCIAL GENERAL LIABILITY COVERAGE PART DECLARATIONSGA532 07/08CLAIMS-MADE EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM DECLARATIONS

GA531 07/08

LIQUOR LIABILITY COVERAGE PART DECLARATIONSGA539 07/08

IA 509 01 12 Page ofEPP 049 72 16 / EBA 049 72 16

1 2


FORMS APPLICABLE TO ALL COVERAGE PARTS:CINCIPLUS® CRIME XC+® (EXPANDED COVERAGE PLUS) COVERAGE PART DECLARATIONS

CA519XCP 03/09

BUSINESS AUTO COVERAGE PART DECLARATIONSAA505 03/06CINCINNATI DATA DEFENDER™ COVERAGE PART DECLARATIONSHC502 01/18

Countersigned By(Date) (Authorized Representative)

06-18-2019 14:07

IA 509 01 12 Page ofEPP 049 72 16 / EBA 049 72 16

2 2


IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998

COMMON POLICY CONDITIONS

All Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation

1. The first Named Insured shown in the Declarations may cancel this policy bymailing or delivering to us advance writtennotice of cancellation.

2. We may cancel this policy by mailing or delivering to the first Named Insured writ-ten notice of cancellation at least:

a. 10 days before the effective date ofcancellation if we cancel for nonpay-ment of premium; or

b. 30 days before the effective date ofcancellation if we cancel for any other reason.

3. We will mail or deliver our notice to the first Named Insured's last mailing addressknown to us.

4. Notice of cancellation will state the effec-tive date of cancellation. The policy pe-riod will end on that date.

5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund.

6. If notice is mailed, proof of mailing will be sufficient proof of notice.

B. Changes

This policy contains all the agreements be-tween you and us concerning the insurance af-forded. The first Named Insured shown in the Declarations is authorized to make changes inthe terms of this policy with our consent. Thispolicy's terms can be amended or waived only by endorsement issued by us and made a partof this policy.

C. Examination of Your Books and Records

We may examine and audit your books andrecords as they relate to this policy at any timeduring the policy period and up to three yearsafterward.

D. Inspections and Surveys

1. We have the right to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find; and

c. Recommend changes.

2. We are not obligated to make any inspec-tions, surveys, reports or recommenda-tions and any such actions we do under-take relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not un-dertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions:

a. Are safe or healthful; or

b. Comply with laws, regulations, codesor standards.

3. Paragraphs 1. and 2. of this condition ap-ply not only to us, but also to any rating, advisory, rate service or similar organiza-tion which makes insurance inspections, surveys, reports or recommendations.

4. Paragraph 2. of this condition does not apply to any inspections, surveys, reportsor recommendations we may make rela-tive to certification, under state or munici-pal statutes, ordinances or regulations, of boilers, pressure vessels or elevators.

E. Premiums

The first Named Insured shown in the Declara-tions:

1. Is responsible for the payment of all pre-miums; and

2. Will be the payee for any return premiumswe pay.

F. Transfer of Your Rights and Duties Underthis Policy

Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individualnamed insured.

If you die, your rights and duties will be trans-ferred to your legal representative but only while acting within the scope of duties as yourlegal representative. Until your legal represen-tative is appointed, anyone having proper tem-porary custody of your property will have yourrights and duties but only with respect to thatproperty.


ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGEDIA 102 A 09 08

SUMMARY OF PREMIUMS CHARGEDAttached to and forming part ofPOLICY NUMBER: Effective Date:

Named Insured:

THIS POLICY CONSISTS OF THE FOLLOWING COVERAGEPARTS FOR WHICH A PREMIUM CHARGE IS INDICATED

Commercial Property Coverage Part $

Commercial General Liability Coverage Part $

Commercial Auto Coverage Part $

Commercial Umbrella / Excess Liability Coverage Part $

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Terrorism Coverage $

Installment Charge $

$PAYMENTS

First RemainingInstallment Installment(s)

Automobile Coverages, Employers Liability, Employment Practices Liability Coverage, Professional Liability Coverage, Terrorism Coverage and / or Wrongful Acts Coverage, if included in the policy, are subject to Annual Adjustment of rates and premium on each anniversary of the policy.

Commercial Umbrella and Excess Liability, if included in the policy, may be subject to Annual Adjustment of premium on each anniversary. Refer to the Commercial Umbrella or Excess Liability Coverage PartDeclarations form to see if this is applicable.

EPP 049 72 16 / EBA 049 72 16 07-20-2019


W/EBC 1,630

3,134

125

DATA DEFENDER COVERAGE PART 143

CRIME EXPANDED COVERAGE PLUS 125

EMPLOYMENT PRACTICES LIABILITY 300

LIQUOR LIABILITY 2,286

382

ANNUAL TOTAL 8,125

MONTHLY * *

*SEE BILLING STATEMENT MAILED SEPARATELY


IA 904 04 04

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

SCHEDULE OF LOCATIONS

LOC. STREET ADDRESS CITY STATE ZIP CODE

1 2211 N MILWAUKEE AVECHICAGO, IL 60647-2063


IA 4236 01 15

POLICYHOLDER NOTICETERRORISM INSURANCE COVERAGE

THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT. THIS ENDORSEMENTDOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY.

Your policy may contain coverage for certain losses caused by terrorism.

Premium:

In accordance with the federal Terrorism Risk Insurance Act, we are required to notify you of the portion of thepremium, if any, attributable to the coverage for terrorist acts certified under the Terrorism Risk Insurance Act.

• Refer to the SUMMARY OF PREMIUMS CHARGED or DECLARATIONS PAGE for the portion of your premium that is attributable to coverage for terrorist acts certified under the Act.

Federal Participation:

The Act also requires us to provide disclosure of federal participation in payment of terrorism losses.

• Under your policy, any losses caused by certified acts of terrorism would be partially reimbursed by the United States Government, Department of Treasury, under a formula established by federal law. Under this formula, the federal share equals a percentage, as specified in the Schedule below, of that portion of the amount of such insured losses that exceeds the applicable insurer retention. However, if aggregateinsured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year, the Treasury shall not make any payment for any portion of the amount of suchlosses that exceeds $100 billion.

• Schedule:

Federal Share of Terrorism LossesPercentage Calendar Year

85% 2015

84% 2016

83% 2017

82% 2018

81% 2019

80% 2020

Cap on Insurer Participation:

If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed$100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury.

NOTE: IF YOUR POLICY IS A RENEWAL POLICY, THIS NOTICE IS PROVIDED TO SATISFY THE REQUIREMENTS UNDER THE TERRORISM RISK INSURANCE ACT FOR POLICYHOLDER DISCLOSURE: (1) AT THE TIME OF OUR OFFER TO RENEW THE POLICY AND (2) AT THE TIME THE RENEWAL IS COMPLETED.


IA 4427 02 13

NOTICE OF LOSS CONTROL SERVICES

The Cincinnati Insurance Companies provide certain loss prevention services to policyholders at no additionalcost. These services are designed to prevent or reduce the impact of potential loss causing events orconditions related to the type(s) of insurance coverage you have purchased from us. One of these services thatyou can receive is described below:

Employment Practices Liability (EPL) Toll-Free Hot Line

Have a question on how to handle an employment situation? Simply call The Cincinnati Insurance CompaniesEmployment Connection at 1-888-811-3427 for assistance. We offer policyholders an unlimited number of callsseeking advice on employment policies and procedures.

The services provided are advisory in nature. While this program is offered as a resource in developing or maintaining a loss prevention program, you should consult competent legal counsel to design and implementyour own program. No liability is assumed by reason of the services, access or information provided. All services are subject to change without notice. Use of the EPL Toll-Free Hot Line will not be deemed to satisfy any notice of claim or notice of wrongful act provision contained in any policy.


IA 4433 IL 03 17

IMPORTANT POLICYHOLDERS NOTICE - ILLINOIS

Part 919 of the Rules of the Illinois Department of Insurance requires that our company advise you that if youwish to contact the Illinois Department of Insurance, it maintains a Consumer Division at:

122. S. Michigan Ave., 19th Floor, Chicago, Illinois 60603; and

320 West Washington Street, Springfield, Illinois 62767,

You may also reach the Illinois Department of Insurance at http://insurance.illinois.gov; or

312-814-2420 or 217-782-4515.

Should you have any complaints arise regarding this insurance you may contact the following:

Complaint Department of The Cincinnati Insurance Company at P.O. Box 145496, Cincinnati, Ohio, 45250-5496.

Public Service Section of the Department of Insurance at Illinois Department of Insurance, Consumer Division, Springfield, Illinois, 62767.


IP 409IL (1/91)

IMPORTANT INFORMATION TO POLICYHOLDERS

ILLINOIS

In the event you need to contact someone about this policy for any reason, please contact your agent. If youhave additional questions, you may contact the insurance company issuing this policy at the following ad-dress or telephone collect:

The Cincinnati Insurance CompanyP.O. Box 145496Cincinnati, Ohio 45250-5496Telephone (513) 870-2278

The Cincinnati Casualty CompanyP.O. Box 145496Cincinnati, Ohio 45250-5496Telephone (513) 870-2278

The Cincinnati Indemnity CompanyP.O. Box 145496Cincinnati, Ohio 45250-5496Telephone (513) 870-2278


IP 446 08 01

THE CINCINNATI INSURANCE COMPANYTHE CINCINNATI CASUALTY COMPANYTHE CINCINNATI INDEMNITY COMPANY

NOTICE TO POLICYHOLDERS

Please be advised that in your application for insurance you disclosed information to The Cincinnati InsuranceCompany, The Cincinnati Casualty Company and The Cincinnati Indemnity Company. The information dis-closed in the application and all information subsequently collected by any of these companies may beshared among all three.


IA 4006 07 10 Page 1 of 2


SPECIAL PER OCCURRENCE DEDUCTIBLE ENDORSEMENT

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PARTCOMMERCIAL INLAND MARINE COVERAGE PARTCRIME AND FIDELITY COVERAGE PART

A. Special Per Occurrence Deductible

1. If an "occurrence" happens to Covered Property under the Commercial Property Coverage Part andto Covered Property under at least one of the following:

a. The Commercial Inland Marine Coverage Part, and

b. The Crime and Fidelity Coverage Part;

the most we will deduct from any loss or damage in any one "occurrence" is the deductible indicatedon the COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS.

2. This endorsement does not apply to any of the forms listed in Paragraphs a. and b.:

a. * Electronic Data Processing Coverage Form, Section III, 2. Deductible, a.(2) SpecifiedLosses Deductible

* Water Backup from Sewers, Drains, Septic Systems or Sump Pumps Endorsement

Windstorm or Hail Percentage Deductible Form

Earthquake and Volcanic Eruption Endorsement

Earthquake and Volcanic Eruption Endorsement (Sub-Limit Form)

Flood Coverage Endorsement

Equipment Breakdown Coverage (Including Production Equipment)

Equipment Breakdown Coverage (Excluding Production Equipment)

* Temperature Change Coverage Form

Commercial Crime Coverage Form, A. Insuring Agreements, 1. Employee Theft, 2. Forgeryor Alteration, 6. Computer Fraud and 7. Funds Transfer Fraud

Crime Expanded Coverage (XC® ) Coverage or Expanded Coverage Plus Forms, A.Insuring Agreements, 1. Employee Theft and 2. Forgery or Alteration

Government Crime Coverage Form, A. Insuring Agreements, 1. Employee Theft - Per LossCoverage, 2. Employee Theft - Per Employee Coverage, 3. Forgery or Alteration, 7.Computer Fraud and 8. Funds Transfer Fraud

* Or such coverage as provided in the CinciPlus® Commercial Property or Commercial PropertyPower Expanded Coverage or Expanded Coverage Plus Forms

b. Other


IA 4006 07 10 Page 2 of 2

B. Definition

For the purpose of this endorsement only, any definition of "occurrence" is deleted in its entirety and thefollowing definition is added to:

1. COMMERCIAL PROPERTY CONDITIONS,2. COMMERCIAL INLAND MARINE CONDITIONS,3. COMMERCIAL CRIME COVERAGE FORM,4. CRIME EXPANDED COVERAGE (XC® ) COVERAGE FORM, and5. GOVERNMENT CRIME COVERAGE FORM:

"Occurrence" means all loss, damage, or a sequence of loss or damage, casualties or disasters arisingfrom a single happening or event.


Includes copyrighted material of InsuranceIA 4156 IL 01 18 Services Office, Inc., with its permission. Page 1 of 2


ILLINOIS CHANGES - CANCELLATION AND NONRENEWAL


COMMERCIAL PROPERTY COVERAGE PARTFARM COVERAGE PART

A. The Cancellation Common Policy Condition isdeleted in its entirety and replaced by the fol-lowing:

CANCELLATION

1. The first Named Insured shown in the Declarations may cancel this policy bymailing to us advance written notice of cancellation.

2. If this policy has been in effect for 60 daysor less, except as provided in Paragraphs8. and 9. below, we may cancel this policyby mailing written notice of cancellation at least:

a. 10 days before the effective date ofcancellation if we cancel for nonpay-ment of premium; or

b. 30 days before the effective date of cancellation if we cancel for any other reason.

3. If this policy has been in effect for more than 60 days, except as provided in Para-graphs 8. and 9. below, we may cancelthis policy only for one or more of the fol-lowing reasons:

a. Nonpayment of premium;

b. The policy was obtained through a material misrepresentation;

c. You have violated any of the termsand conditions of the policy;

d. The risk originally accepted hasmeasurably increased;

e. Certification to the Director of Insur-ance of the loss of reinsurance by the insurer which provided coverage to us for all or a substantial part of the underlying risk insured; or

f. A determination by the Director that the continuation of the policy could place us in violation of the insurance laws of this State.

If we cancel this policy based on one or more of the above reasons except for nonpayment of premium, we will mail writ-

ten notice at least 60 days before the ef-fective date of cancellation. When cancel-lation is for nonpayment of premium, we will mail written notice at least 10 days be-fore the effective date of cancellation.

4. We will mail our notice to you at your last mailing address known to us, any mortga-gee or lienholder listed on the policy and to the broker, if known, or agent of record, if known. Proof of mailing will be sufficient proof of notice.

5. Notice of cancellation will state the effec-tive date of cancellation. The policy periodwill end on that date.

6. If this policy is cancelled, we will send the first Named Insured any premium refunddue. If we or the first Named Insured can-cel, the refund will be pro rata. The can-cellation will be effective even if we have not made or offered a refund.

7. Our notice of cancellation will state the reason for cancellation.

8. Real Property Other Than Residential Properties Occupied by 4 Families or Less

The following applies only if this policy co-vers real property other than residential property occupied by 4 families or less:

If any one or more of the following condi-tions exists at any building that is Covered Property in this policy, we may cancel thispolicy by mailing to you written notice of cancellation if:

a. After a fire loss, permanent repairs to the building have not started within 60 days of satisfactory adjustment ofloss, unless the delay is due to a la-bor dispute or weather conditions.

b. The building has been unoccupied 60 or more consecutive days. This doesnot apply to:

(1) Seasonal unoccupancy; or

(2) Buildings under repair, construc-tion or reconstruction, if properly



secured against unauthorizedentry.

c. The building has:

(1) An outstanding order to vacate;

(2) An outstanding demolition order; or

(3) Been declared unsafe in accord-ance with the law.

d. Heat, water, sewer service or publiclighting have not been connected to the building for 30 consecutive daysor more.

The policy will terminate 10 days followingreceipt of the written notice by the named insured(s).

9. Residential Properties Occupied by 4 Families or Less

The following applies if this policy covers residential properties occupied by 4 fami-lies or less:

If this policy has been in effect for 60 days, or if this is a renewal policy, we mayonly cancel this policy for one or more of the following reasons:


b. The policy was obtained by misrepre-sentation or fraud; or

c. Any act that measurably increasesthe risk originally accepted.

If we cancel this policy based on one or more of the above reasons except for nonpayment of premium, we will mail writ-ten notice at least 30 days before the ef-fective date of cancellation. When cancel-lation is for nonpayment of premium, we will mail written notice at least 10 days be-fore the effective date of cancellation.

10. For insurance provided under the Com-mercial Property Coverage Part, the fol-lowing applies:

GRAIN IN PUBLIC GRAIN WARE-HOUSES

(Not applicable to grain owned by the Commodity Credit Corporation)

The following applies only with respect to grain in public grain warehouses:

The first Named Insured or we may can-cel this policy at any time by mailing to:

a. The other; and

b. The Director of the Illinois Depart-ment of Agriculture (at its Springfield Office);

60 days' written notice of cancella-tion.

B. The following is added and supersedes anyprovision to the contrary:

NONRENEWAL

1. If we decide not to renew or continue thispolicy, we will mail you, at your last mail-ing address known to us, your broker, ifknown, or your agent of record, if known and any mortgagee or lienholder listed onthe policy written notice, stating the rea-son for nonrenewal, at least 60 days be-fore the end of the policy period. If we of-fer to renew or continue and you do not accept, this policy will terminate at the end of the current policy period. Failure to paythe required renewal or continuation pre-mium when due shall mean that you havenot accepted our offer.

Proof of mailing will be sufficient proof of notice.

If we fail to mail proper written notice of nonrenewal and you obtain other insur-ance, this policy will end on the effective date of that insurance.

2. The following provision applies only if thispolicy covers residential properties occu-pied by 4 families or less:

a. If this policy has been issued to you and in effect with us for 5 or more years, we may not fail to renew thispolicy unless:

(1) The policy was obtained by mis-representation or fraud;

(2) The risk originally accepted hasmeasurably increased; or

(3) You received 60 days' notice ofour intent not to renew as pro-vided in 1. above.

b. If this policy has been issued to you and in effect with us for less than 5 years, we may not fail to renew thispolicy unless you received 30 days’ notice as provided in 1. above.






CHEMICAL DRIFT LIMITED LIABILITY COVERAGE FORM - CLAIMS-MADECINCINNATI CYBER DEFENSE™ COVERAGE PARTCINCINNATI DATA DEFENDER™ COVERAGE PARTCINCINNATI NETWORK DEFENDER™ COVERAGE PARTCLAIMS-MADE EXCESS LIABILITY COVERAGE FORMCOMMERCIAL GENERAL LIABILITY COVERAGE PARTCOMMERCIAL UMBRELLA LIABILITY COVERAGE PARTCONTRACTOR'S ERRORS AND OMISSIONS COVERAGE FORM CLAIMS-MADEEMPLOYEE BENEFIT LIABILITY COVERAGE FORMEMPLOYMENT PRACTICES LIABILITY COVERAGE PARTEXCESS LIABILITY COVERAGE FORMEXCESS WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE FORMHOLE-IN-ONE COVERAGE FORMILLINOIS CONTRACTORS' LIMITED WORKSITE POLLUTION LIABILITY COVERAGE FORMLIQUOR LIABILITY COVERAGE PARTMANUFACTURER'S ERRORS AND OMISSIONS COVERAGE FORM - CLAIMS-MADEPOLLUTION LIABILITY COVERAGE PARTPRODUCT WITHDRAWAL COVERAGE FORMPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PARTPROFESSIONAL LIABILITY COVERAGE PARTPROFESSIONAL UMBRELLA LIABILITY COVERAGE PARTPROFESSIONAL UMBRELLA LIABILITY COVERAGE PART - CLAIMS-MADESEPTIC SYSTEMS DESIGN INSPECTION ERRORS AND OMISSIONS COVERAGE PART

A. Cancellation (Common Policy Conditions) isdeleted in its entirety and replaced by the fol-lowing:

CANCELLATION

1. The first Named Insured shown in the Declarations may cancel this policy bymailing to us advance written notice of cancellation.

2. We may cancel this policy by mailing to you, at your last mailing address known to us, written notice stating the reason for cancellation. Proof of mailing will be suffi-cient proof of notice. If we cancel:

a. For nonpayment of premium, we will mail the notice at least 10 days prior to the effective date of cancellation.

b. For a reason other than nonpayment of premium, we will mail the notice at least:

(1) 30 days prior to the effectivedate of cancellation if the policy has been in effect for 60 days or less.

(2) 60 days prior to the effectivedate of cancellation if the policy has been in effect for more than60 days.

3. If this policy has been in effect for more than 60 days, we may cancel only for one or more of the following reasons:


b. The policy was obtained through amaterial misrepresentation;

c. Any insured has violated any of the terms and conditions of the policy;

d. The risk originally accepted hasmeasurably increased;

e. Certification to the Director of Insur-ance of the loss of reinsurance by the insurer that provided coverage to usfor all or a substantial part of the un-derlying risk insured; or

f. A determination by the Director of In-surance that the continuation of the policy could place us in violation ofthe insurance laws of this State.



4. Notification of cancellation will also be sent to your broker, if known, or agent of record, if known.

5. Notice of cancellation will state the effec-tive date of cancellation. The policy periodwill end on that date.

6. If this policy is cancelled we will send thefirst Named Insured any premium refund due. If we or the first Named Insured can-cels, the refund will be pro rata. The can-cellation will be effective even if we have not offered a refund.

B. The following is added and supersedes anyprovision to the contrary:

1. NONRENEWAL

a. If we decide not to renew or continue this policy, we will mail you, at your last mailing address known to us, written notice, stating the reason for the nonrenewal, at least:

(1) 60 days before the end of thepolicy period. for all policies oth-er than that described in a.(2); or

(2) 30 days before the end of thepolicy period for all commercial excess and umbrella liability pol-icies as defined in 215 ILL. COMP. STAT.143.13 (h). The nonrenewal shall not become ef-fective until at least 30 days from the proof of mailing date of thenotice to you.

b. Proof of mailing will be sufficient proof of notice.

c. Notification of nonrenewal will also be sent to your broker, if known, or agent of record, if known.

d. If we offer to renew or continue and you do not accept, this policy will ter-minate at the end of the current policyperiod. Failure to pay the required re-newal or continuation premium when due shall mean that you have not ac-cepted our offer.

e. If we fail to mail proper written noticeof nonrenewal and you obtain other insurance, this policy will end on the effective date of that insurance.

For the purposes of Paragraph a.(2), commercial excess and umbrella liabilitypolicies are defined in 215 ILL. COMP. STAT. 143.13.(h) as follows:

(h) "Commercial excess and umbrella lia-bility policy" means a policy written over one or more underlying policies for an in-sured:

(1) that has at least 25 full-time em-ployee at the time the commer-cial excess and umbrella liability policy is written and procures the insurance of any risk or risks, other than life, accident andhealth, and annuity contracts ,asdescribed in clauses (a) and (b) of Class 1 of Section 4 andclause (a) of Class 2 of Section4, by use of the services of a full-time employee acting as an in-surance manager or buyer; or

(2) whose aggregate annual premi-ums for all property and casualty insurance on all risks is at least $50,000.


Includes copyrighted material of ISOProperties, Inc. and American Association

IA 4238 01 15 of Insurance Services, with their permission.


CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM


All Commercial Lines Coverage Parts, Coverage Forms, Policies and Endorsements subject to the federal Terrorism Risk Insurance Act and any amendments and extensions thereto

A. The following definition is added with respect to the provisions of this endorsement:

"Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act. The criteria contained in the Terrorism Risk Insurance Act for a "certi-fied act of terrorism" include the following:

1. The act resulted in insured losses in ex-cess of $5 million in the aggregate, attrib-utable to all types of insurance subject to the Terrorism Risk Insurance Act; and

2. The act is a violent act or an act that isdangerous to human life, property or in-frastructure and is committed by an indi-vidual or individuals, as part of an effort to coerce the civilian population of the Unit-ed States or to influence the policy or af-fect the conduct of the United StatesGovernment by coercion.

B. Cap On Losses from Certified Acts of Ter-rorism

If aggregate insured losses attributable to ter-rorist acts certified under the Terrorism RiskInsurance Act exceed $100 billion in a calen-dar year and we have met our insurer deducti-ble under the Terrorism Risk Insurance Act, we shall not be liable for the payment of anyportion of the amount of such losses that ex-

ceeds $100 billion, and in such case insured losses up to that amount are subject to pro ra-ta allocation in accordance with proceduresestablished by the Secretary of the Treasury.

C. Application of Other Exclusions

The terms and limitations of any terrorism ex-clusion, or the inapplicability, omission or ab-sence of a terrorism exclusion, does not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part, Coverage Form, Policy or Endorsement such as losses excluded by:

1. Exclusions that address war, warlike ac-tion, insurrection, rebellion, revolution, mil-itary action, nuclear hazard, nuclear mate-rials, nuclear reaction, radiation, or radio-active contamination;

2. Exclusions that address pollutants, con-tamination, deterioration, fungi or bacteria;or

3. Any other exclusion,

regardless if the "certified act of terrorism"contributes concurrently or in any sequence to the loss.

D. Sunset Clause

If the federal Terrorism Risk Insurance Act ex-pires or is repealed, then this endorsement is null and void for any act of terrorism that takes place after the expiration or repeal of the Act.


IA 4338 05 11

SIGNATURE ENDORSEMENT

IN WITNESS WHEREOF, this policy has been signed by our President and Secretary in the City of Fairfield, Ohio, but this policy shall not be binding upon us unless countersigned by an authorized representative ofours. The failure to countersign does not void coverage in Arizona, Virginia and Wisconsin.

Secretary President

The signature on any form, endorsement, policy, declarations, jacket or application other than the signature of the President or Secretary named above is deleted and replaced by the above signatures.




ILLINOIS CHANGES


COMMERCIAL PROPERTY COVERAGE PARTFARM COVERAGE PARTSTANDARD PROPERTY POLICY

A. When this endorsement is attached to Stand-ard Property Policy CP 00 99, the terms Cov-erage Part and Coverage Form in this en-dorsement are replaced by the term Policy.

B. The following is added to the Legal Action Against Us Condition:

The 2 year period for legal action against us isextended by the number of days between the date the proof of loss is filed with us and the date we deny the claim in whole or in part.

C. If this policy covers:

1. The following in a. and b., then Para-graphs 2. and 3. apply:

a. Real property used principally for res-idential purposes up to and including a four family dwelling; or

b. Household or personal property that is usual or incidental to the occupan-cy of any premises used for residen-tial purposes.

2. The second paragraph of the AppraisalCondition is deleted and replaced by the following:

a. Each party will pay its own appraiser and bear the other expenses of the appraisal and umpire equally, except as provided in b. below.

b. We will pay your appraiser's fee andthe umpire's appraisal fee, if the fol-lowing conditions exist:

(1) You demanded the appraisal; and

(2) The full amount of loss, as set by your appraiser, is agreed to by our appraiser or by the umpire.

3. The Concealment, Misrepresentation or Fraud Condition is replaced by the fol-lowing:

CONCEALMENT, MISREPRESENTA-TION OR FRAUD

a. This Coverage Part or Coverage Form is void if you or any insured ("insured") commit fraud or conceal or misrepresent a fact in the processleading to the issuance of this insur-ance, and such fraud, concealment or misrepresentation is stated in the policy or endorsement or in the writ-ten application for this policy and:

(1) Was made with actual intent todeceive; or

(2) Materially affected either our de-cision to provide this insuranceor the hazard we assumed.

However, this condition will not serve as a reason to void this Coverage Part or Coverage Form after the Coverage Part or Coverage Form has been in effect for one year or one policy term, whichever is less.

b. We do not provide coverage under this Coverage Part or Coverage Formto you or any other insured ("in-sured") who, at any time subsequent to the issuance of this insurance, commit fraud or intentionally concealor misrepresent a material fact relat-ing to:

(1) This Coverage Part or CoverageForm;

(2) The Covered Property;

(3) Your interest in the CoveredProperty; or

(4) A claim under this Coverage Part or Coverage Form.

c. Notwithstanding the limitations stated in 3.a. above, we may cancel the Coverage Part or Coverage Form in



accordance with the terms of the Cancellation Condition.

D. For the Commercial Property Coverage Part and the Standard Property Policy, the followingexclusion and related provisions are added to Paragraph B.2. Exclusions in the Causes of Loss Forms and to any Coverage Form or pol-icy to which a Causes of Loss Form is not at-tached:

1. We will not pay for loss or damage arising out of any act an insured commits or con-spires to commit with the intent to cause a loss.

In the event of such loss, no insured is en-titled to coverage, even insureds who didnot commit or conspire to commit the act causing the loss.

2. However, this exclusion will not apply to deny payment to an innocent co-insured who did not cooperate in or contribute to the creation of the loss if:

a. The loss arose out of a pattern of criminal domestic violence; and

b. The perpetrator of the loss is crimi-nally prosecuted for the act causing the loss.

3. If we pay a claim pursuant to Paragraph D.2., our payment to the insured is limited to that insured's insurable interest in the property less any payments we first made to a mortgagee or other party with a legal secured interest in the property. In no

event will we pay more than the Limit of Insurance.

E. The Intentional Loss Exclusion in the Caus-es of Loss Form - Farm Property, Mobile Agri-cultural Machinery And Equipment Coverage Form and Livestock Coverage Form is re-placed by the following:

1. We will not pay for loss ("loss") or dam-age arising out of any act an "insured"commits or conspires to commit with the intent to cause a loss ("loss").

In the event of such loss ("loss"), no "in-sured" is entitled to coverage, even "in-sureds" who did not commit or conspire tocommit the act causing the loss ("loss").

2. However, this exclusion will not apply to deny payment to an innocent co-"insured"who did not cooperate in or contribute to the creation of the loss ("loss") if:

a. The loss ("loss") arose out of a pat-tern of criminal domestic violence; and

b. The perpetrator of the loss ("loss") iscriminally prosecuted for the act causing the loss.

3. If we pay a claim pursuant to Paragraph E.2., our payment to the "insured" is lim-ited to that "insured's" insurable interest in the property less any payments we first made to a mortgagee or other party with a legal secured interest in the property. In no event will we pay more than the Limit of Insurance.


Includes copyrighted material of InsuranceIA 4395 IL 04 17 Services Office, Inc., with its permission.


ILLINOIS CHANGES - CIVIL UNION


CHEMICAL DRIFT LIMITED LIABILITY COVERAGE FORMCOMMERCIAL AUTOMOBILE COVERAGE PARTCOMMERCIAL PROPERTY COVERAGE PARTCOMMERCIAL GENERAL LIABILITY COVERAGE PARTCOMMERCIAL UMBRELLA LIABILITY COVERAGE PARTCONTRACTOR'S ERRORS AND OMISSIONS COVERAGE FORM CLAIMS-MADEEMPLOYEE BENEFIT LIABILITY COVERAGE FORMEMPLOYMENT PRACTICES LIABILITY COVERAGE PARTEXCESS LIABILITY COVERAGE FORMEXCESS WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE FORMHOLE-IN-ONE COVERAGE FORMILLINOIS CONTRACTORS' LIMITED WORKSITE POLLUTION LIABILITY COVERAGE FORMFARM COVERAGE PARTLIQUOR LIABILITY COVERAGE PARTMANUFACTURER'S ERRORS AND OMISSIONS COVERAGE FORM - CLAIMS-MADEOWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PARTPOLLUTION LIABILITY COVERAGE PARTPRODUCT WITHDRAWAL COVERAGE PARTPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PARTPROFESSIONAL LIABILITY COVERAGE PARTPROFESSIONAL UMBRELLA LIABILITY COVERAGE PARTPROFESSIONAL UMBRELLA LIABILITY COVERAGE PART - CLAIMS-MADESEPTIC SYSTEMS DESIGN INSPECTION ERRORS AND OMISSIONS COVERAGE PARTUNDERGROUND STORAGE TANK POLICY

A. The term "spouse" is replaced by the following:

Spouse or party to a civil union recognized un-der Illinois law.

B. Under the Commercial Auto Coverage Part, the term "family member" is replaced by the follow-ing:

"Family member" means a person related to the:

1. Individual Named Insured by blood, adop-tion, marriage or civil union recognized un-der Illinois law, who is a resident of such Named Insured's household, including award or foster child; or

2. Individual named in the Schedule by blood, adoption, marriage or civil union recog-

nized under Illinois law, who is a resident ofthe individual's household, including a ward or foster child, if the Drive Other Car Cov-erage - Broadened Coverage For NamedIndividual Endorsement is attached.

C. With respect to coverage for the ownership, maintenance, or use of "covered autos" provid-ed under the Commercial Liability Umbrella Coverage Part, the term "family member" is re-placed by the following:

"Family member" means a person related to you by blood, adoption, marriage or civil union recognized under Illinois law, who is a residentof your household, including a ward or foster child.


IL 00 21 11 85 Copyright, Insurance Services Office, Inc., 1983, 1984 Page 1 of 2


NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT(Broad Form)

This endorsement modifies insurance provided under the following;

BUSINESSOWNERS POLICYCOMMERCIAL AUTO COVERAGE PARTCOMMERCIAL GENERAL LIABILITY COVERAGE PARTFARM COVERAGE PARTPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PARTLIQUOR LIABILITY COVERAGE PARTPOLLUTION LIABILITY COVERAGE PARTOWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PARTRAILROAD PROTECTIVE LIABILITY COVERAGE PARTSPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY NEW YORK DEPARTMENT OF TRANS-PORTATION

1. The insurance does not apply:

A. Under any Liability Coverage, to "bodilyinjury" or "property damage:"

(1) With respect to which an "insured"under the policy is also an insuredunder a nuclear energy liability policyissued by Nuclear Energy LiabilityInsurance Association, MutualAtomic Energy Liability Underwriters,Nuclear Insurance Association ofCanada or any of their successors,or would be an insured under anysuch policy but for its terminationupon exhaustion of its limit of liability;or

(2) Resulting from the "hazardous prop-erties" of "nuclear material" and withrespect to which (a) any person ororganization is required to maintainfinancial protection pursuant to theAtomic Energy Act of 1954, or anylaw amendatory thereof, or (b) the"insured" is, or had this policy notbeen issued would be, entitled to in-demnity from the United States ofAmerica, or any agency thereof, un-der any agreement entered into bythe United States of America, or anyagency thereof, with any person ororganization.

B. Under any Medical Payments coverage,to expenses incurred with respect to"bodily injury" resulting from the "hazard-ous properties" of "nuclear material" andarising out of the operation of a "nuclearfacility" by any person or organization.

C. Under any Liability Coverage, to "bodilyinjury" or "property damage" resultingfrom the "hazardous properties" of "nu-clear material," if:

(1) The "nuclear material" (a) is at any"nuclear facility" owned by, or oper-ated by or on behalf of, an "insured"or (b) has been discharged or dis-persed therefrom;

(2) The "nuclear material" is contained in"spent fuel" or "waste" at any time

possessed, handled, used, proc-essed, stored, transported or dis-posed of by or on behalf of an "in-sured;" or

(3) The "bodily injury" or "property dam-age" arises out of the furnishing byan "insured" of services, materials,parts or equipment in connectionwith the planning, construction,maintenance, operation or use ofany "nuclear facility," but if such fa-cility is located within the UnitedStates of America, its territories orpossessions or Canada, this exclu-sion (3) applies only to "propertydamage" to such "nuclear facility"and any property thereat.

2. As used in this endorsement:

"Hazardous properties" include radioactive,toxic or explosive properties;

"Nuclear material," means "source material,""Special nuclear material" or "by-product ma-terial;"

"Source material," "special nuclear material,"and "by-product material" have the meaningsgiven them in the Atomic Energy Act of 1954or in any law amendatory thereof;

"Spent fuel" means any fuel element or fuelcomponent, solid or liquid, which has beenused or exposed to radiation in a "nuclear re-actor;"

"Waste" means any waste material (a) con-taining "by-product material" other than thetailings or wastes produced by the extractionor concentration of uranium or thorium fromany ore processed primarily for its "sourcematerial" content, and (b) resulting from theoperation by any person or organization ofany "nuclear facility" included under the firsttwo paragraphs of the definition of "nuclearfacility."

"Nuclear facility" means:

(a) Any "nuclear reactor;"

(b) Any equipment or device designedor used for (1) separating the iso-


IL 00 21 11 85 Copyright, Insurance Services Office, Inc., 1983, 1984 Page 2 of 2

topes of uranium or plutonium, (2)processing or utilizing "spent fuel," or(3) handling, processing or packag-ing "waste;"

(c) Any equipment or device used forthe processing, fabricating or alloy-ing of "special nuclear material" if atany time the total amount of suchmaterial in the custody of the "in-sured" at the premises where suchequipment or device is located con-sists of or contains more than 25grams of plutonium or uranium 233or any combination thereof, or morethan 250 grams or uranium 235;

(d) Any structure, basin, excavation,premises or place prepared or usedfor the storage or disposal of"waste;"

and includes the site on which any of theforegoing is located, all operations conductedon such site and all premises used for suchoperations;

"Nuclear reactor" means any apparatus de-signed or used to sustain nuclear fission in aself-supporting chain reaction or to contain acritical mass of fissionable material;"Property damage" includes all forms of ra-dioactive contamination of property.


THE CINCINNATI INSURANCE COMPANYA Stock Insurance Company

COMMERCIAL PROPERTY COVERAGE PART DECLARATIONSAttached to and forming part of POLICY NUMBER:Named Insured is the same as it appears on the Common Policy Declarations unless otherwise stated here.

EPP 049 72 16

Loc. (address)REFER TO IA904

COVERAGE PROVIDEDOPTIONAL COVERAGES

Applicable only when an entry is made

Item Coverage Limits

Coin-surance

CoveredCause Of

Loss

BusinessIncome

Indemnity

Inflation Guard

(%)

Replace-ment Cost

(x)

Replace-ment Cost Incl. Stock

(x)

Agreed Value

(x)

MonthlyLimit

(fraction)

Maximum Period

(X)

Extended Period (Days)

1-1 BUSINESS PERSONAL 250,000 80% SPECIAL 4% XPROPERTY INCLUDINGIMPROVEMENTS ANDBETTERMENTS

1-1 BUSINESS INCOME 300,000 80% SPECIALW/EXTRA EXPENSE (b)

DEDUCTIBLE: $500.00 unless otherwise stated $ 1,000

MORTGAGE HOLDER Item Name and Address

FORMS AND / OR ENDORSEMENTS APPLICABLE TO THIS COVERAGE PART:BUILDING AND PERSONAL PROPERTY COVERAGE FORM (INCLUDING SPECIAL CAUSES OF LOSS)

FM101 05/16

ILLINOIS CHANGESFA4028IL 07/17CINCIPLUS® COMMERCIAL PROPERTY POWER XC+® (EXPANDED COVERAGE PLUS) ENDORSEMENT SUMMARY OF COVERAGE LIMITS

FA4098 01/09

COMMERCIAL PROPERTY CONDITIONSFA450 05/16BUSINESS INCOME CHANGES - WAITING PERIODFA458 04/04CINCIPLUS® COMMERCIAL PROPERTY POWER XC+® (EXPANDED COVERAGE PLUS) ENDORSEMENT

FA258 05/16

EQUIPMENT BREAKDOWN COVERAGE (EXCLUDING PRODUCTION MACHINERY)FA244 05/11BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM - ILLINOISFA213IL 05/16

FM 502 07 08 Page ofEPP 049 72 16 1 1


Includes copyrighted material of InsuranceFM 101 05 16 Services Office, Inc., with its permission. Page 1 of 40

BUILDING AND PERSONAL PROPERTY COVERAGE FORM(INCLUDING SPECIAL CAUSES OF LOSS)

TABLE OF CONTENTS

Begins on PageSECTION A. COVERAGE ............................................................................................................................3

1. Covered Property ...........................................................................................................................3a. Building ..................................................................................................................................3b. Outdoor Signs........................................................................................................................3c. Outdoor Fences .....................................................................................................................3d. Business Personal Property.................................................................................................3

2. Property Not Covered ....................................................................................................................4a. Accounts, Deeds, Money or Securities...............................................................................4b. Animals...................................................................................................................................4c. Automobiles...........................................................................................................................4d. Contraband.............................................................................................................................4e. Electronic Data.......................................................................................................................4f. Excavations, Grading & Backfilling.....................................................................................4g. Foundations ...........................................................................................................................4h. Land, Water or Growing Crops ............................................................................................4i. Paved Surfaces......................................................................................................................4j. Property While Airborne or Waterborne .............................................................................4k. Pilings or Piers.......................................................................................................................4l. Property More Specifically Insured .....................................................................................4m. Retaining Walls......................................................................................................................4n. Underground Pipes, Flues or Drains...................................................................................4o. Valuable Papers & Records and Cost to Research............................................................5p. Vehicles or Self-Propelled Machines...................................................................................5q. Property While Outside of Buildings...................................................................................5

3. Covered Causes of Loss..............................................................................................................5a. Covered Causes of Loss.......................................................................................................5b. Exclusions..............................................................................................................................5c. Limitations............................................................................................................................11

4. Additional Coverages.................................................................................................................13a. Change in Temperature or Humidity .................................................................................13b. Debris Removal....................................................................................................................13c. Fire Department Service Charge........................................................................................14d. Fire Protection Equipment Recharge................................................................................14e. Inventory or Appraisal ........................................................................................................14f. Key and Lock Expense .......................................................................................................15g. Ordinance or Law ................................................................................................................15h. Pollutant Clean Up and Removal .......................................................................................16i. Preservation of Property.....................................................................................................16j. Rewards................................................................................................................................16



TABLE OF CONTENTS (CONT'D)

Begins on Page5. Coverage Extensions .................................................................................................................16

a. Accounts Receivable...........................................................................................................17b. Business Income and Extra Expense................................................................................18c. Collapse.................................................................................................................................21d. Electronic Data.....................................................................................................................22e. Exhibitions, Fairs or Trade Shows.....................................................................................23f. Fences ..................................................................................................................................23g. Fungi, Wet Rot, Dry Rot, and Bacteria - Limited Coverage.............................................23h. Glass.....................................................................................................................................24i. Newly Purchased, Leased or Constructed Property........................................................25j. Nonowned Building Damage..............................................................................................26k. Outdoor Property.................................................................................................................26l. Personal Effects...................................................................................................................26m. Property Off Premises.........................................................................................................27n. Signs.....................................................................................................................................27o. Trailers (Nonowned Detached)...........................................................................................27p. Transportation .....................................................................................................................27q. Utility Services.....................................................................................................................27r. Valuable Papers and Records............................................................................................28s. Water Damage, Other Liquids, Powder or Molten Material Damage..............................29

SECTION B. LIMITS OF INSURANCE.......................................................................................................29SECTION C. DEDUCTIBLE........................................................................................................................29

1. Deductible Examples..................................................................................................................302. Glass Deductible.........................................................................................................................30

SECTION D. LOSS CONDITIONS .............................................................................................................301. Abandonment..............................................................................................................................302. Appraisal......................................................................................................................................303. Duties in the Event of Loss or Damage....................................................................................304. Loss Payment..............................................................................................................................315. Recovered Property....................................................................................................................346. Vacancy........................................................................................................................................34

a. Description of Terms...........................................................................................................34b. Vacancy Provisions.............................................................................................................34

7. Valuation......................................................................................................................................34SECTION E. ADDITIONAL CONDITIONS.................................................................................................35

1. Coinsurance ................................................................................................................................352. Mortgage Holders .......................................................................................................................36

SECTION F. OPTIONAL COVERAGES.....................................................................................................361. Agreed Value...............................................................................................................................372. Inflation Guard ............................................................................................................................373. Replacement Cost.......................................................................................................................37

SECTION G. DEFINITIONS........................................................................................................................38



BUILDING AND PERSONAL PROPERTY COVERAGE FORM(INCLUDING SPECIAL CAUSES OF LOSS)

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.

Throughout this policy the words "you" and "your"refer to the Named Insured shown in the Declara-tions. The words "we", "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotationmarks have special meaning. Refer to SECTION G. DEFINITIONS.

SECTION A. COVERAGE

We will pay for direct "loss" to Covered Property at the "premises" caused by or resulting from anyCovered Cause of Loss.

1. Covered Property

Covered Property, as used in this Coverage Part, means the following types of property for which a Limit of Insurance is shown in the Declarations:

a. Building

Building, means the building or structure described in the Declarations, including:

(1) Completed additions;

(2) Fixtures, including outdoor fixtures;

(3) Permanently installed:

(a) Machinery and equipment;

(b) Building glass, including any let-tering and ornamentation;

(c) Signs attached to a building or structure that is Covered Proper-ty;

(d) Awnings and canopies;

(4) Personal property owned by you thatis used to maintain or service a cov-ered building or its "premises", in-cluding:

(a) Fire extinguishing equipment;

(b) Outdoor furniture;

(c) Floor coverings; and

(d) Appliances used for refrigerat-ing, ventilating, cooking, dish-washing or laundering;

(5) If not covered by other insurance:

(a) Additions under construction, al-terations and repairs to a cov-ered building;

(b) Materials, equipment, suppliesand temporary structures, on orwithin 1,000 feet of the "premis-es", used for making additions,alterations or repairs to a cov-ered building.

b. Outdoor Signs

Your outdoor signs permanently installedand not attached to a covered building, and located within 1,000 feet of the "premises".

c. Outdoor Fences

Your outdoor fences.

d. Business Personal Property

Your Business Personal Property consists of the following property located in or onthe building or structure described in theDeclarations or in the open (or in a vehi-cle or portable storage unit) within 1,000 feet of the building or 1,000 feet of the"premises", whichever distance is greater. Your Business Personal Property consists of the following unless otherwise specifiedin the Declarations or on the BUSINESS PERSONAL PROPERTY - SEPARA-TION OF COVERAGE ENDORSEMENT.

(1) Furniture;

(2) Machinery and equipment;

(3) "Stock";

(4) All other personal property owned by you and used in your business;

(5) The cost of labor, materials or ser-vices furnished or arranged by you on personal property of others;

(6) Your use interest as tenant in im-provements and betterments. Im-provements and betterments are fix-tures, alterations, installations or ad-ditions:

(a) Made a part of the building or structure you occupy but do notown; and

(b) You acquired or made at your expense but cannot legally re-move;



(7) Leased personal property used in your business for which you have acontractual responsibility to insure. Such leased property is not consid-ered personal property of others in your care, custody or control;

(8) Personal Property of Others that is in your care, custody or control or for which you are legally liable.

(a) This does not include personaleffects owned by you, your offic-ers, your partners, or if you are alimited liability company, yourmembers or your managers, or your employees (includingleased and temporary workers), except as provided in 5. Cover-age Extensions, l. Personal Ef-fects;

(b) This does not include property ofothers for which you are legallyliable as:

1) A carrier for hire; or

2) An arranger of transporta-tion, including car loaders, consolidators, brokers,freight forwarders, or ship-ping associations; and

(9) Sales samples.

2. Property Not Covered

Covered Property does not include:

a. Accounts, Deeds, Money or Securities

Except as provided in SECTION A.COVERAGE, 5. Coverage Extensions, a. Accounts Receivable, Accounts, bills,currency, deeds, food stamps or other ev-idences of debt, "money", notes or "secu-rities";

b. Animals

Animals, unless

(1) Owned by others and boarded by you; or

(2) Owned by you and covered as"stock" while inside of buildings;

and then only as provided in 3. CoveredCauses of Loss, c. Limitations.

c. Automobiles

Automobiles held for sale;

d. Contraband

Contraband, or property in the course ofillegal transportation or trade;

e. Electronic Data

Except as provided in SECTION A.COVERAGE, 5. Coverage Extensions, d. Electronic Data, "Electronic data". This Paragraph e. does not apply to your "stock" of prepackaged software or to "electronic data" which is integrated in and operates or controls the building's el-evator, lighting, heating, ventilation, air conditioning or security system.

f. Excavations, Grading & Backfilling

The cost of excavations, grading, backfill-ing or filling;

g. Foundations

Foundations of buildings, structures, ma-chinery or boilers, if their foundations are below:

(1) The lowest basement floor; or

(2) The surface of the ground, if there isno basement.

h. Land, Water or Growing Crops

Land (including land on which the proper-ty is located), water, growing crops or lawns (other than lawns which are part ofa vegetative roof);

i. Paved Surfaces

Bridges, roadways, walks, patios or other paved surfaces;

j. Property While Airborne or Waterborne

Personal property while airborne or wa-terborne;

k. Pilings or Piers

Pilings, piers, bulkheads, wharves or docks;

l. Property More Specifically Insured

Property that is covered under another coverage form of this or any other policy in which it is more specifically described,except as provided in G. Other Insur-ance of the COMMERCIAL PROPERTY CONDITIONS;

m. Retaining Walls

Retaining walls that are not part of any building described in the Declarations;

n. Underground Pipes, Flues or Drains

Underground pipes, flues or drains;



o. Valuable Papers & Records and Cost to Research

Except as provided in SECTION A.COVERAGE, 5. Coverage Extensions, r. Valuable Papers and Records, thecost to research, replace or restore the in-formation on "valuable papers and rec-ords", including those which exist as"electronic data".

This does not apply to "valuable papersand records" held for sale by you.

p. Vehicles or Self-Propelled Machines

Vehicles or self-propelled machines (in-cluding aircraft or watercraft) that:

(1) Are licensed for use on public roads;or

(2) Are operated principally away from the "premises".

This paragraph does not apply to:

(1) Vehicles or self-propelled machinesor autos you manufacture, process or warehouse;

(2) Vehicles or self-propelled machines,other than autos, you hold for sale;

(3) Rowboats or canoes out of water andlocated at the "premises"; or

(4) Trailers, but only as provided inSECTION A. COVERAGE, 5. Cov-erage Extensions, o. Trailers(Nonowned Detached).

q. Property While Outside of Buildings

The following property while outside of buildings (except as provided in SEC-TION A. COVERAGE, 5. Coverage Ex-tensions):

(1) Grain, hay, straw or other crops;

(2) Signs, except:

(a) Signs attached to a coveredbuilding or structure;

(b) Signs for which a Limit of Insur-ance is shown in the Declara-tions.

(3) Outdoor fences, except outdoor fences for which a Limit of Insuranceis shown in the Declarations;

(4) Radio antennas, television antennasor satellite dishes; including their lead-in wiring, masts, and towers;and

(5) Trees, shrubs or plants (other thantrees, shrubs or plants that are"stock" or part of a vegetative roof).

3. Covered Causes of Loss

a. Covered Causes of Loss

Covered Causes of Loss means direct "loss" unless the "loss" is excluded or lim-ited in this Coverage Part.

b. Exclusions

(1) We will not pay for "loss" caused di-rectly or indirectly by any of the fol-lowing, unless otherwise provided. Such "loss" is excluded regardless ofany other cause or event that con-tributes concurrently or in any se-quence to the "loss".

(a) Ordinance or Law

Except as provided in SECTION A. COVERAGE, 4. Additional Coverages, g. Ordinance orLaw, the enforcement of or compliance with any ordinanceor law:

1) Regulating the construction,use or repair of any building or structure; or

2) Requiring the tearing downof any building or structure,including the cost of remov-ing its debris.

This exclusion applies whether "loss" results from:

1) An ordinance or law that isenforced even if the buildingor structure has not been damaged; or

2) The increased costs in-curred to comply with an or-dinance or law in the courseof construction, repair, ren-ovation, remodeling ordemolition of any building orstructure, or removal of itsdebris, following a direct "loss" to that building orstructure.

(b) Earth Movement

1) Earthquake, including trem-ors and aftershocks and any earth sinking, rising or shift-ing related to such event;

2) Landslide, including anyearth sinking, rising or shift-ing related to such event;



3) Mine subsidence, meaningsubsidence of a man-made mine, whether or not miningactivity has ceased;

4) Earth sinking (other than"sinkhole collapse"), rising or shifting including soilconditions which cause set-tling, cracking or other dis-arrangement of foundationsor other parts of realty. Soil conditions include contrac-tion, expansion, freezing,thawing, erosion, improperlycompacted soil and the ac-tion of water under theground surface.

But if Earth Movement, as de-scribed in (b)1) through 4)above, results in fire or explo-sion, we will pay for the "loss"caused by that fire or explosion.

5) Volcanic eruption, explosionor effusion. But if volcaniceruption, explosion or effu-sion results in fire, buildingglass breakage or volcanicaction, we will pay for the"loss" caused by that fire, building glass breakage orvolcanic action.

Volcanic action means di-rect "loss" resulting from theeruption of a volcano whenthe "loss" is caused by:

a) Airborne volcanic blast or airborne shock waves;

b) Ash, dust or particulatematter; or

c) Lava flow.

With respect to coverage forVolcanic Action, all volcaniceruptions that occur withinany 168-hour period willconstitute a single occur-rence.

Volcanic action does not in-clude the cost to removeash, dust or particulate mat-ter that does not cause di-rect "loss" to the described property.

This Earth Movement exclusionapplies regardless of whether any of the above, in paragraphs1) through 5), is caused by an

act of nature or is otherwisecaused.

(c) Governmental Action

Seizure or destruction of proper-ty by order of governmental au-thority. However, we will pay for"loss" caused by or resultingfrom acts of destruction orderedby governmental authority andtaken at the time of a fire to pre-vent its spread, if the fire wouldbe covered under this CoveragePart.

(d) Nuclear Hazard

Nuclear reaction or radiation, orradioactive contamination, how-ever caused.

(e) Utility Services

1) Except as provided in SEC-TION A. COVERAGE, 5.Coverage Extensions, q.Utility Services, the failureof power, communication, water or other utility ser-vices supplied to the "prem-ises", however caused, ifthe failure:

a) Originates away from the "premises"; or

b) Originates at the "prem-ises", but only if suchfailure involves equip-ment used to supply the utility service to the"premises" from a source away from the "premises".

Failure of any utility service includes lack of sufficientcapacity and reduction insupply. "Loss" caused by asurge of power is also ex-cluded if the surge wouldnot have occurred but for an event causing the failure ofpower.

However, if the failure orsurge of power, or the fail-ure of communication, wa-ter, wastewater removal orother utility service results ina Covered Cause of Loss,we will pay for that portionof "loss" caused by thatCovered Cause of Loss.

Communication services in-clude but are not limited to



service relating to Internetaccess or access to anyelectronic, cellular or satel-lite network.

(f) War and Military Action

1) War, including undeclaredor civil war;

2) Warlike action by a military force, including action inhindering or defendingagainst an actual or ex-pected attack, by any gov-ernment, sovereign or otherauthority using military per-sonnel or other agents; or

3) Insurrection, rebellion, revo-lution, usurped power, oraction taken by governmen-tal authority in hindering ordefending against any ofthese.

(g) Water

1) Flood, meaning the partialor complete inundation ofnormally dry land areas dueto:

a) The unusual or rapid accumulation or runoff of rain or surface wa-ters from any source; or

b) Waves, tidal waters, tidal waves (including tsunami); or

c) Water from rivers, ponds, lakes, streams,or any other body of water that rises above, overflows from, or is not contained within itsnatural or man-made boundary;

and all whether driven by wind or not, including storm surge.

2) Mudslides or mudflows,which are caused by flood-ing as defined above inParagraph (g)1) above. Mudslide or mudflow in-volves a river of liquid andflowing mud on the surfaceof normally dry land areasas when earth is carried bya current of water and de-posited along the path ofthe current;

3) Water that has entered andthen backs up through andis discharged from a sewer, drain, septic system, sumppump system or related equipment; or

4) Water under the ground sur-face pressing on, or flowingor seeping through:

a) Foundations, walls, floors or paved surfac-es;

b) Basements, whether paved or not; or

c) Doors, windows or oth-er openings.

5) Waterborne material carriedor otherwise moved by anyof the water referred to in Paragraphs (g)1), 3) or 4), or material carried or other-wise moved by mudslide ormudflow as described inParagraph (g)2).

This exclusion applies regard-less of whether any of the abovein Paragraphs (g)1) through(g)5) is caused by an act of na-ture or is otherwise caused. Anexample of a situation to whichthis exclusion applies is the situ-ation where a dam, levee, sea-wall or other boundary or con-tainment system fails in whole orin part, for any reason, to con-tain the water.

However, if any of the above, asdescribed in Paragraphs (g)1) through (g)5), results in fire, ex-plosion or sprinkler leakage, wewill pay for that portion of "loss"caused by that fire, explosion orsprinkler leakage (if sprinklerleakage is a Covered Cause of Loss).

(h) "Fungi", Wet Rot, Dry Rot, andBacteria

1) Presence, growth, prolifera-tion, spread or any activityof "fungi", wet or dry rot or bacteria. But if "fungi", wet or dry rot or bacteria resultsin a "specified cause of loss", we will pay for the"loss" caused by that "speci-fied cause of loss".



2) This exclusion does not ap-ply:

a) When "fungi", wet or dry rot or bacteria re-sults from fire or light-ning; or

b) To the extent that cov-erage is provided in SECTION A. COVER-AGE, 5. Coverage Ex-tensions, g. "Fungi", Wet Rot, Dry Rot and Bacteria - Limited Coverage with respect to "loss" from a causeof loss other than fire or lightning.

Exclusions b.(1)(a) through b.(1)(h)apply whether or not the "loss" event results in widespread damage or af-fects a substantial area.

(2) We will not pay for "loss" caused byor resulting from any of the following:

(a) Electrical Current

Artificially generated electrical, magnetic or electromagnetic en-ergy that damages, disturbs, dis-rupts or otherwise interferes withany:

1) Electrical or electronic wire,device, appliance, system or network; or

2) Device, appliance, system or network utilizing cellularor satellite technology.

For the purpose of this exclu-sion, electrical, magnetic or elec-tromagnetic energy includes but is not limited to:

1) Electrical current, includingarcing;

2) Electrical charge producedor conducted by a magneticor electromagnetic field;

3) Pulse of electromagneticenergy; or

4) Electromagnetic waves ormicrowaves.

However, if fire results, we willpay for "loss" caused by that fire.

(b) Delay or Loss of Use

Delay, loss of use or loss of market.

(c) Smoke, Vapor, Gas

Smoke, vapor or gas from agri-cultural smudging or industrialoperations.

(d) Miscellaneous Causes of Loss

1) Wear and tear;

2) Rust or other corrosion, de-cay, deterioration, hidden orlatent defect or any qualityin property that causes it todamage or destroy itself;

3) Smog;

4) Settling, cracking, shrinkingor expansion;

5) Nesting or infestation, ordischarge or release of waste products or secre-tions, by insects, birds, ro-dents or other animals;

6) Mechanical breakdown, in-cluding rupture or burstingcaused by centrifugal force. However, if mechanicalbreakdown results in eleva-tor collision, we will pay for that portion of "loss" caused by that elevator collision; or

7) The following causes of lossto personal property:

a) Marring or scratching;

b) Except as provided inSECTION A. COVER-AGE, 4. Additional Coverages, a. Change in Temperature orHumidity and 5. Cov-erage Extensions, q. Utility Services;

i) Dampness or dry-ness of atmos-phere; and

ii) Changes in or ex-tremes of tem-perature.

However, if an excluded causeof loss listed in (2)(d)1) through7) results in a "specified cause of "loss" or building glass break-age, we will pay for that portionof "loss" caused by that "speci-fied cause of loss" or buildingglass breakage.



(e) Explosion of Steam Apparatus

Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leasedby you, or operated under yourcontrol. However, if explosion ofsteam boilers, steam pipes, steam engines or steam turbinesresults in fire or combustion ex-plosion, we will pay for that por-tion of "loss" caused by that fireor combustion explosion. We willalso pay for "loss" caused by orresulting from the explosion ofgases or fuel within the furnaceof any fired vessel or within theflues or passages through whichthe gases of combustion pass.

(f) Water Seepage

Continuous or repeated seepageor leakage of water or the pres-ence or condensation of humidi-ty, moisture, or vapor that occursover a period of 14 days or more.

(g) Freezing of Plumbing

Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, airconditioning or other equipment (except fire protection systems) caused by or resulting from freezing, unless:

1) You did your best to main-tain heat in the building orstructure; or

2) You drained the equipmentand shut off the supply if theheat was not maintained.

(h) Dishonest or Criminal Acts

Dishonest or criminal acts (in-cluding theft) by you, any of your partners, members (if a limited liability company), officers, man-agers, employees (includingleased workers or temporaryemployees) directors, trustees, or authorized representatives; whether acting alone or in collu-sion with each other or with anyother party; or theft by any per-son to whom you entrust the property for any purpose, whether acting alone or in collu-sion with any other party.

This exclusion applies whether or not an act occurs during thehours of operation.

This Dishonest or Criminal Acts exclusion does not apply toacts of destruction by your em-ployees (including leased work-ers or temporary employees) or by authorized representatives; except theft by employees (in-cluding leased workers or tem-porary employees) is not cov-ered.

(i) Voluntary Parting Under FalsePretense

Voluntary parting with any prop-erty by you or anyone else towhom you have entrusted theproperty if induced to do so byany fraudulent scheme, trick, device or false pretense.

(j) Exposure to Weather

Rain, snow, ice or sleet to per-sonal property in the open.

(k) Collapse

Collapse, including any of thefollowing conditions of propertyor any part of the property:

1) An abrupt falling down or caving in;

2) Loss of structural integrity,including separation of partsof the property or propertyin danger of falling down orcaving in; or

3) Any cracking, bulging, sag-ging, bending, leaning, set-tling, shrinkage or expan-sion as such condition re-lates to Paragraph (k)1) or2) above.

But if collapse results in a Cov-ered Cause of Loss at the"premises", we will pay for "loss"caused by that Covered Causeof Loss.

This exclusion Collapse doesnot apply:

1) To the extent that coverageis provided under the SEC-TION A. COVERAGE, 5.Coverage Extensions, c. Collapse; or

2) To collapse caused by oneor more of the following:



a) The "specified causesof loss";

b) Breakage of building glass;

c) Weight of rain that col-lects on a roof; or

d) Weight of people or personal property.

(l) Pollutants

Discharge, dispersal, seepage,migration, release, escape oremission of "pollutants" unlessthe discharge, dispersal, seep-age, migration, release, escapeor emission is itself caused byany of the "specified causes of loss". But if the discharge, dis-persal, seepage, migration, re-lease, escape or emission of"pollutants" results in a "speci-fied cause of loss", we will payfor the "loss" caused by that "specified cause of loss".

This exclusion does not apply to"loss" to glass caused by chemi-cals applied to the glass.

m) Loss or Damage to Product

We will not pay for "loss" toCovered Property consisting ofmerchandise, goods or other product caused by or resulting from error or omission by anyperson or entity (including thosehaving possession under an ar-rangement where work or a por-tion of the work is outsourced) inany stage of the development, production or use of the product, including planning, testing, pro-cessing, packaging, installation,maintenance or repair. This ex-clusion applies to any effect thatcompromises the form, sub-stance or quality of the product.But if such error or omission re-sults in a Covered Cause ofLoss, we will pay for "loss"caused by that Covered Causeof Loss.

(n) Neglect

Neglect of an insured to use allreasonable means to save andpreserve property from furtherdamage at and after the time of "loss".

(3) We will not pay for "loss" caused byor resulting from any of the followingin Paragraphs (3)(a) through (3)(c). However, if an excluded cause of loss that is listed in Paragraphs (3)(a)through (3)(c) results in a CoveredCause of Loss, we will pay for that portion of "loss" caused by that Cov-ered Cause of Loss:

(a) Weather Conditions

Weather conditions, but this ex-clusion only applies if weather conditions contribute in any waywith a cause or event excludedin SECTION A. COVERAGE, 3. Covered Causes of Loss, b.Exclusions, (1)(a) through(1)(h) to produce the "loss".

(b) Acts or Decisions

Acts or decisions, including thefailure to act or decide, of any person, group, organization or governmental body.

(c) Defects, Errors, and Omis-sions

1) An act, error, or omission(negligent or not) relating to:

a) Land use;

b) Design, specifications, construction, workman-ship;

c) Planning, zoning, de-velopment, surveying, siting, grading, com-paction; or

d) Maintenance, installa-tion, renovation, repair, or remodeling

of part or all of any propertyon or off the "premises";

2) A defect, weakness, inade-quacy, fault, or unsound-ness in materials used in construction or repair of partor all of any property on oroff the "premises"; or

3) The cost to make good anyerror in design.



(4) Special Exclusions

The Special Exclusions apply only toSECTION A. COVERAGE, 5. Cov-erage Extensions, b. Business In-come and Extra Expense; and if at-tached to this policy, the followingcoverage forms: BUSINESS IN-COME (AND EXTRA EXPENSE)COVERAGE FORM, BUSINESS IN-COME (WITHOUT EXTRA EX-PENSE) COVERAGE FORM, andEXTRA EXPENSE COVERAGE FORM.

We will not pay for:

(a) Any "loss" caused by or resultingfrom:

1) Damage or destruction of"finished stock"; or

2) The time required to repro-duce "finished stock".

This Exclusion (4)(a) does not apply to Extra Expense.

(b) Any "loss" caused by or resultingfrom damage to radio or televi-sion antennas (including satellitedishes) and their lead-in wiring,masts or towers.

(c) Any increase of "loss" caused byor resulting from:

1) Delay in rebuilding, repair-ing or replacing the propertyor resuming "operations", due to interference at thelocation of the rebuilding,repair or replacement bystrikers or other persons; or

2) Suspension, lapse or can-cellation of any license,lease or contract. However, if the suspension, lapse or cancellation is directlycaused by the "suspension"of "operations", we will cov-er such "loss" that affects your "Business Income"during the "period of resto-ration" and any extension ofthe "period of restoration" inaccordance with the termsof the Extended BusinessIncome Additional Coverageand the Extended Period ofIndemnity Optional Cover-age or any variation ofthese.

(d) Any Extra Expense caused by orresulting from suspension, lapse

or cancellation of any license,lease or contract beyond the"period of restoration".

(e) Any other indirect "loss".

c. Limitations

The following limitations apply to all policy forms and endorsements shown on theCOMMERCIAL PROPERTY COVER-AGE PART DECLARATIONS, unlessotherwise stated:

(1) Limitations - Various Types ofProperty

We will not pay for "loss" to property as described and limited in this sec-tion. In addition, we will not pay forany "loss" that is a consequence of "loss" as described and limited in thissection.

(a) Steam Apparatus

Steam boilers, steam pipes, steam engines or steam turbinescaused by or resulting from any condition or event inside suchequipment. But we will pay for"loss" to such equipment causedby or resulting from an explosionof gases or fuel within the fur-nace of any fired vessel or withinthe flues or passages throughwhich the gases of combustionpass.

(b) Hot Water Boilers

Hot water boilers or other waterheating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explo-sion.

(c) Building Interiors

The interior of any building orstructure, or to personal propertyin the building or structure, caused by or resulting from rain, snow, sleet, ice, sand or dust,whether driven by wind or not,unless:

1) The building or structure first sustains damage by aCovered Cause of Loss toits roof or walls throughwhich the rain, snow, sleet,ice, sand or dust enters; or

2) The "loss" is caused by or results from thawing of



snow, sleet or ice on thebuilding or structure.

(d) Theft of Building Materials

Building materials and suppliesnot attached as part of the build-ing or structure, caused by orresulting from theft.

However, this limitation does notapply to:

1) Building materials and sup-plies held for sale by you; or

2) "Business Income" cover-age or Extra Expense cov-erage.

(e) Missing Property

Property that is missing, wherethe only evidence of the "loss" isa shortage disclosed on takinginventory, or other instanceswhere there is no physical evi-dence to show what happenedto the property.

(f) Transferred Property

Property that has been trans-ferred to a person or to a placeoutside the "premises" on thebasis of unauthorized instruc-tions.

(g) Vegetative Roofs

Lawns, trees, shrubs or plants which are part of a vegetated roof, caused by or resultingfrom:

1) Dampness or dryness ofatmosphere or of soil sup-porting the vegetation;

2) Changes in or extremes oftemperature;

3) Disease;

4) Frost or hail; or

5) Rain, snow, ice or sleet.

(2) Limitations - Various Property forSpecified Causes

We will not pay for "loss" to the fol-lowing types of property unlesscaused by the "specified causes of loss" or building glass breakage:

(a) Animals, and then only if theyare killed or their destruction isdeemed necessary.

(b) Contractors equipment, machin-ery and tools owned by you orentrusted to you, provided suchproperty is Covered Property.

However, this limitation does notapply:

1) If the property is located onor within 1,000 feet of the"premises"; or

2) To Business Income cover-age or to Extra Expense coverage.

(3) Limitation - Personal Property Theft

This Limitation does not apply to"Business Income" coverage or to Extra Expense coverage. For eachcategory described in Paragraphc.(3)(a) through (3)(d) below, the most we will pay for "loss" in any oneoccurrence of theft to all property inthat category, regardless of the typesor number of articles for that category that are lost or damaged in that oc-currence, are the following speciallimits:

(a) $2,500 for Furs, fur garments and garments trimmed with fur.

(b) $2,500 for Jewelry, watches,watch movements, jewels,pearls, precious and semi-precious stones, bullion, gold,silver, platinum and other pre-cious alloys or metals. This limi-tation does not apply to jewelry and watches worth $100 or lessper item.

(c) $2,500 for Patterns, dies, molds and forms.

(d) $250 for Stamps, tickets, includ-ing lottery tickets held for sale,and letters of credit.

These special limits are not addition-al Limits of Insurance.

(4) Limitation - System or ApplianceDefects

(a) We will not pay the cost to repairany defect to a system or appli-ance from which water, otherliquid, powder or molten materialescapes; and

(b) We will not pay to replace thesubstance that escapes as de-scribed in Paragraph c.(4)(a)above.



But we will pay the cost to repair or replace damaged parts of fire extin-guishing equipment if the damageresults in discharge of any substancefrom an automatic fire protection sys-tem, or is directly caused by freezing.

However, this Limitation c.(4)(a) doesnot apply to "Business Income" Cov-erage or to Extra Expense Coverage.

4. Additional Coverages

Unless stated otherwise, SECTION C. DE-DUCTIBLE does not apply to Paragraph 4.Additional Coverages.

Unless stated otherwise, these Paragraph 4. Additional Coverages apply on a per location basis.

a. Change in Temperature or Humidity

We will pay for direct "loss" to your cov-ered Business Personal Property caused by a change in temperature or humidity or contamination by refrigerant resultingfrom damage by a Covered Cause of Loss to equipment used for refrigerating, cooling, humidifying, dehumidifying, air conditioning, heating, generating or con-verting power (including their connectionsand supply or transmission lines andpipes) when located on the "premises".

This Coverage is included within the Lim-its of Insurance shown in the Declara-tions.

b. Debris Removal

(1) Subject to Paragraphs b.(2), (3) and(4) of this Additional Coverage, wewill pay your expense to remove de-bris of Covered Property and other debris that is on the "premises",when such debris is caused by or re-sults from a Covered Cause of Loss that occurs during the "coverageterm". The expenses will be paid only if they are reported to us in writingwithin 180 days of the date of direct "loss".

(2) Debris Removal does not apply tocosts to:

(a) Extract "pollutants" from land or water;

(b) Remove, restore or replace pol-luted land or water;

(c) Remove debris of property ofyours that is not insured underthis Coverage Part, or property in your possession that is not Covered Property;

(d) Remove debris of propertyowned by or leased to the land-lord of the building where your"premises" are located, unlessyou have a contractual respon-sibility to insure such propertyand it is insured under this Cov-erage Part;

(e) Remove any property that isProperty Not Covered, includingproperty addressed under 5.Coverage Extensions, k. Out-door Property.

(f) Remove property of others of a type that would not be CoveredProperty under this CoveragePart;

(g) Remove deposits of mud orearth from the grounds of the"premises".

(3) Subject to the exceptions in Para-graph b.(4) below, the following pro-visions apply:

(a) The most we will pay for the totalof direct "loss" plus debris re-moval expense is the Limit of In-surance applicable to the Cov-ered Property that has sustained"loss".

(b) Subject to Paragraph b.(3)(a), the amount we will pay for debrisremoval expense is limited to25% of the sum of the deductibleplus the amount that we pay fordirect "loss" to the CoveredProperty that has sustained"loss".

(4) We will pay up to an additional$10,000 for debris removal expensefor each "premises", in any one oc-currence of direct "loss" to Covered Property, if one or both of the follow-ing circumstances apply:

(a) The total of the actual debrisremoval expense plus theamount we pay for direct "loss"exceeds the Limit of Insurance on the Covered Property thathas sustained "loss".

(b) The actual debris removal ex-pense exceeds 25% of the sum of the deductible plus theamount that we pay for direct"loss" to the Covered Propertythat has sustained "loss".

Therefore, if Paragraph b.(4)(a) and/or (4)(b) apply, our total payment for direct



"loss" and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained "loss", plus $10,000.

(5) Examples

The following examples assume that there is no coinsurance penalty.

Example #1

Limit of Insurance $90,000Amount of Deductible $500Amount of "Loss" $50,000Amount of "Loss" Payable $49,500($50,000 - $500)Debris Removal Expense $10,000Debris Removal ExpensePayable $10,000($10,000 is 20% of $50,000)

The debris removal expense is less than 25% of the sum of the "loss" payable plus the de-ductible. The sum of the "loss" payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore, the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3).

Example #2

Limit of Insurance$90,000

Amount of Deductible $500Amount of "Loss" $80,000Amount of "Loss" Payable $79,500($80,000 - $500)Debris Removal Expense $30,000Debris Removal Expense Payable

Basic Amount $10,500Additional Amount $10,000

The basic amount payable for debris removal expense under the terms of Paragraph (3) iscalculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000; capped at $10,500. The cap applies because the sum of the "loss"payable ($79,500) and the basic amount pay-able for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000).

The additional amount payable for debris re-moval expense is provided in accordance withthe terms of Paragraph (4), because the de-bris removal expense ($30,000) exceeds 25%of the "loss" payable plus the deductible($30,000 is 37.5% of $80,000), and becausethe sum of the "loss" payable and debris re-moval expense ($79,500 + $30,000 = $109,500) would exceed the Limit of Insur-ance ($90,000). The additional amount of covered debris removal expense is $10,000,the maximum payable under Paragraph (4). Thus the total payable for debris removal ex-

pense in this example is $20,500; $9,500 of the debris removal expense is not covered.

c. Fire Department Service Charge

When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to$5,000 in any one occurrence for your li-ability, which is determined prior to the di-rect "loss", for fire department servicecharges:

(1) Assumed by contract or agreement; or

(2) Required by local ordinance.

Such limit is the most we will pay regard-less of the number of responding fire de-partments or fire units, and regardless of the number or type of services performed. This Coverage is in addition to the Limitsof Insurance shown in the Declarations.

d. Fire Protection Equipment Recharge

(1) We will pay for the expenses you in-cur to recharge your automatic fire suppression system or portable fire extinguishers when the equipment isdischarged:

(a) To combat a covered fire towhich this insurance applies;

(b) As a result of another coveredCause of Loss other than fire; or

(c) As a result of an accidental dis-charge.

(2) We will not pay your expenses to re-charge fire protection equipment as a result of a discharge during testing orinstallation.

(3) If it is less expensive to do so, we willpay your costs to replace your auto-matic fire suppression system orportable fire extinguishers rather than recharge that equipment.

The most we will pay in any one occur-rence under this Additional Coverage is$25,000. This Coverage is in addition tothe Limits of Insurance shown in the Dec-larations.

e. Inventory or Appraisal

(1) We will pay the necessary expensesyou incur to prepare claim infor-mation as required by this CoveragePart. Expenses must result from:

(a) Taking inventories;

(b) Making appraisals; and



(c) Preparing a statement of lossand other supporting exhibits.

(2) We will not pay for any expenses:

(a) Incurred to prove that "loss" iscovered;

(b) Incurred under SECTION D. LOSS CONDITIONS, 2. Ap-praisal;

(c) Incurred for examinations underoath;

(d) Billed by and payable to inde-pendent or public adjusters; or

(e) To prepare claims not coveredby this Coverage Part.

The most we will pay for any one occur-rence under this Additional Coverage is$10,000. This Coverage is in addition tothe shown in the Declarations.

f. Key and Lock Expense

(1) If a key or master key is lost, stolen,or damaged, we will pay for:

(a) The actual expense of the new keys; and

(b) The adjustment of locks to ac-cept new keys; or

(c) If required, new locks, includingthe expense of their installation;

but only for locks at buildings or structures covered by this CoveragePart.

(2) This Coverage does not apply to keys that were given to former em-ployees.

The most we will pay in any one occur-rence under this Additional Coverage isLimit of Insurance $1,000. This Coverageis in addition to the Limit of Insurance shown in the Declarations.

g. Ordinance or Law

(1) If a covered building or structure sus-tains direct "loss" from a Covered Cause of Loss, resulting in the en-forcement of or compliance with anordinance or law that is in force at thetime of "loss" and regulates the dem-olition, construction or repair of build-ings or structures, or establishes zon-ing or land use requirements at the "premises", then subject to SECTION D, LOSS CONDITIONS, 4. LossPayment, we will pay:

(a) Loss of Use of Undamaged Parts of Buildings

The costs you incur to rebuild atthe same "premises" any un-damaged portion of your buildingor structure caused by enforce-ment of or compliance with anordinance or law requiringdemolition of undamaged partsof the same building or structure. We will only pay the costs to sat-isfy the minimum requirementsof the ordinance or law. Lossesand costs incurred in complyingwith recommended actions or standards that exceed actual re-quirements are not covered.

(b) Demolition Costs

The costs you incur to demolishand clear the site of undamagedparts of the same building orstructure as a result of Para-graph g.(1)(a) above.

(c) Increased Costs of Construc-tion

1) For buildings or structuresto which SECTION F. OP-TIONAL COVERAGES, 3.Replacement Cost applies, the increased costs to com-ply with the minimum standards of an ordinanceor law to:

a) Repair or reconstruct damaged portions of that building or struc-ture; and

b) Reconstruct or remodel undamaged portions of that building or struc-ture whether or not demolition is required;

However, this increasedcost of construction appliesonly if the building or struc-ture is repaired, recon-structed or remodeled andis intended for occupancysimilar to the building or structure it replaces, unlesssuch occupancy is not per-mitted by zoning or land useordinance or law.

2) For this Paragraph g.(1)(c)only, the increased costs torepair or reconstruct the fol-lowing:



a) The cost of excava-tions, grading, backfill-ing and filling;

b) Foundation of the build-ing;

c) Pilings;

d) Underground pipes, flues and drains.

The items listed in Para-graphs g.2)a) throughg.2)d) above are deleted from SECTION A. COVER-AGE, 2. Property NotCovered;

(2) We will not pay for:

(a) Enforcement of or compliancewith any ordinance or law whichrequires the demolition, repair, replacement, reconstruction,remodeling or remediation ofproperty due to contamination by"pollutants" or due to the pres-ence, growth, proliferation,spread or any activity of "fungi", wet or dry rot or bacteria; or

(b) The costs associated with theenforcement of or compliancewith any ordinance or law whichrequires any insured or others totest for, monitor, clean up, re-move, contain, treat, detoxify orneutralize, or in any way re-spond to, or assess the effectsof "pollutants", "fungi", wet or dryrot or bacteria.

(3) We will not pay for "loss" due to anyordinance or law that:

(a) You were required to comply with before the "loss", even if the building or structure was un-damaged; and

(b) With which you failed to comply.

(4) The terms of this Additional Cover-age apply separately to each building or structure covered by this Cover-age Part.

The most we will pay under this Additional Coverage is $10,000 per building. This isin addition to the Limit of Insuranceshown in the Declarations for the building suffering "loss".

h. Pollutant Clean Up and Removal

We will pay your expenses to extract "pol-lutants" from land or water at the "premis-es" if the discharge, dispersal, seepage,

migration, release, escape or emission of the "pollutants" is caused by or results from a Covered Cause of Loss that oc-curs during the "coverage term". The ex-penses will be paid only if they are re-ported to us in writing within 180 days ofthe date on which the Covered Cause of Loss occurs.

This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pol-lutants". But we will pay for testing whichis performed in the course of extractingthe "pollutants" from the land or water.

The most we will pay under this Additional Coverage for each "premises" is $10,000for the sum of all covered expenses aris-ing out of Covered Causes of Loss during each "coverage term". This Coverage isin addition to the Limit of Insuranceshown in the Declarations.

i. Preservation of Property

If it is necessary to move Covered Prop-erty from the "premises" to preserve itfrom imminent "loss" by a Covered Cause of Loss, we will pay for any direct "loss" tothat property:

(1) While it is being moved or while tem-porarily stored at another location;and

(2) Only if the "loss" occurs within 60days after the property is first moved.

This Coverage is included within Limit ofInsurance shown in the Declarations for such Covered Property.

j. Rewards

We will pay to provide a reward for infor-mation that leads to a conviction for ar-son, theft, vandalism, or burglary. The conviction must involve a covered "loss"caused by arson, theft, vandalism, or bur-glary.

The most we will pay for "loss" in any oneoccurrence under this Additional Cover-age is $10,000. This Coverage is in addi-tion to the Limit of Insurance shown in the Declarations.

5. Coverage Extensions

Unless amended within a particular CoverageExtension, each Extension applies to property located in or on the building described in the Declarations or in the open (or in a vehicle orportable storage unit) within 1,000 feet of the "premises".



The limits applicable to the Coverage Exten-sions are in addition to the Limit of Insurance shown in the Property Declarations. Limits of Insurance specified in these Extensions apply per location unless stated otherwise.

SECTION E. ADDITIONAL CONDITIONS, 1. Coinsurance, does not apply to these Cover-age Extensions.

a. Accounts Receivable

SECTION C. DEDUCTIBLE does not ap-ply to this Coverage Extension.

(1) When you sustain direct "loss" toyour accounts receivable recordscaused by a Covered Cause of Loss,we will pay:

(a) All amounts due from your cus-tomers that you are unable tocollect;

(b) Interest charges on any loan re-quired to offset amounts you areunable to collect pending ourpayment of these amounts;

(c) Collection expenses in excess ofyour normal collection expensesthat are made necessary by the"loss"; and

(d) Other reasonable expenses that you incur to re-establish your records of accounts receivable.

(2) Coverage does not apply to:

(a) Records of accounts receivablein storage away from the "prem-ises"; or

(b) Contraband, or property in thecourse of illegal transportation ortrade.

(3) We will extend coverage to include:

(a) Removal

If you give us written notice with-in 30 days of removal of yourrecords of accounts receivablebecause of imminent danger ofdirect "loss" from a CoveredCause of Loss, we will pay for"loss" while they are:

1) At a safe place away from your "premises"; or

2) Being taken to and returnedfrom that place.

This Removal coverage is in-cluded within the Limit of Insur-ance applicable to this CoverageExtension.

(b) Away From Your Premises

The most we will pay in any oneoccurrence is $5,000, regardlessof the number of locations, for "loss" caused by a CoveredCause of Loss to Accounts Re-ceivable while they are awayfrom your "premises".

This Away From Premises Limit is in addition to the Limit of In-surance applicable to this Cov-erage Extension.

(4) SECTION A. COVERAGE, 3. Cov-ered Causes of Loss, b. Exclu-sions does not apply to this Cover-age Extension, except as follows:

(a) Exclusion (1)(c) GovernmentalAction;

(b) Exclusion (1)(d) Nuclear Haz-ard;

(c) Exclusion (1)(f) War and Mili-tary Action.

(5) In addition to Paragraph a.(4) of this Coverage Extension, we will not payfor "loss" resulting from any of the fol-lowing:

(a) Dishonest or criminal acts by:

1) You, your partners, employ-ees, directors, trustees orauthorized representatives;

2) A manager or a member ifyou are a limited liabilitycompany;

3) Anyone else with an interestin the records of accountsreceivable, or their employ-ees or authorized repre-sentatives; or

4) Anyone else entrusted withthe records of accounts re-ceivable for any purpose.

This Paragraph a.(5)(a) applieswhether or not such persons areacting alone or in collusion withother persons or such act occursduring the hours of employment.

However, this Paragraph a.(5)(a)does not apply to dishonest actsof a carrier for hire or to acts of destruction by your employees.However, theft by employees isstill not covered.

(b) Alteration, falsification, conceal-ment or destruction of records of



accounts receivable done toconceal the wrongful giving, tak-ing or withholding of "money", "securities" or other property.

This exclusion applies only tothe extent of the wrongful giving,taking or withholding.

(c) Bookkeeping, accounting or bill-ing errors or omissions.

(d) Electrical or magnetic injury, dis-turbance or erasure of "electron-ic data" that is caused by or re-sults from:

1) Programming errors orfaulty machine instructions;

2) Faulty installation ormaintenance of data pro-cessing equipment or com-ponent parts;

3) An occurrence that tookplace more than 100 feetfrom your "premises"; or

4) Interruption of electricalpower supply, power surge, blackout or brownout if thecause of such occurrencetook place more than 100feet from your "premises".

But we will pay for direct "loss"caused by lightning.

(e) Voluntary parting with any prop-erty by you or anyone entrustedwith the property if induced to doso by any fraudulent scheme, trick, device or false pretense.

(f) A "loss" that requires any auditof records or any inventory com-putation to prove its factual ex-istence.

(6) Determination of Receivables:

(a) If you cannot accurately estab-lish the amount of accounts re-ceivable outstanding as of thetime of direct "loss", the followingmethod will be used:

1) Determine the total of theaverage monthly amountsof accounts receivable forthe 12 months immediatelypreceding the month inwhich the direct "loss" oc-curs; and

2) Adjust that total for anynormal fluctuations in theamount of accounts receiv-

able for the month in whichthe direct "loss" occurred orfor any demonstrated vari-ance from the average forthat month.

(b) The following will be deductedfrom the total amount of ac-counts receivable, however thatamount is established:

1) The amount of the accountsfor which there is no direct "loss"; and

2) The amount of the accountsthat you are able to re-establish or collect; and

3) An amount to allow for probable bad debts that youare normally unable to col-lect; and

4) All unearned interest andservice charges.

The most we will pay for "loss" in any oneoccurrence under this Coverage Exten-sion is $25,000.

b. Business Income and Extra Expense


(1) Business Income

We will pay for the actual loss of"Business Income" and "Rental Val-ue" you sustain due to the necessary "suspension" of your "operations"during the "period of restoration". The"suspension" must be caused by di-rect "loss" to property at a "premises"caused by or resulting from any Cov-ered Cause of Loss. With respect to"loss" to personal property in theopen or personal property in a vehi-cle or portable storage unit, the"premises" include the area within 1,000 feet of the building or 1,000feet of the "premises", whichever isgreater.

With respect to the requirements of the preceding paragraph, if you are atenant and occupy only part of the site at which the "premises" are lo-cated, for the purpose of this Cover-age Extension only, your "premises"is the portion of the building that yourent, lease or occupy, including:

(a) Any area within the building or on the site at which the "premis-es" are located if that area ser-



vices or is used to gain access to the "premises"; and

(b) Your personal property in theopen (or in a vehicle or portablestorage unit) within 1,000 feet ofthe building or 1,000 feet of the"premises", whichever is greater.

(2) Extra Expense

(a) We will pay Extra Expense yousustain during the "period of res-toration". Extra Expense meansnecessary expenses you sustain(as described in Paragraphs(2)(b), (c) and (d)) during the"period of restoration" that you would not have sustained ifthere had been no direct "loss"to property caused by or result-ing from a Covered Cause of Loss.

(b) If these expenses reduce theotherwise payable "Business In-come" "loss", we will pay ex-penses (other than the expenseto repair or replace property asdescribed in Paragraph (2)(c)) to:

1) Avoid or minimize the "sus-pension" of business and to continue "operations" either:

a) At the "premises"; or

b) At replacement "prem-ises" or temporary loca-tions, including reloca-tion expenses and costs to equip and op-erate the replacement location or temporary location; or

2) Minimize the "suspension"of business if you cannotcontinue "operations".

(c) We will also pay expenses to:

1) Repair or replace property;or

2) Research, replace or re-store the lost information ondamaged "valuable papersand records";

but only to the extent this pay-ment reduces the otherwisepayable "Business Income""loss". If any property obtainedfor temporary use during the"period of restoration" remainsafter the resumption of normal

"operations", the amount we willpay under this Coverage will bereduced by the salvage value ofthat property.

(d) Extra Expense does not apply to"loss" to Covered Property asdescribed in the BUILDINGAND PERSONAL PROPERTY COVERAGE FORM.

(3) Civil Authority

When a Covered Cause of Losscauses damage to property otherthan Covered Property at a "premis-es", we will pay for the actual loss of "Business Income" and necessaryExtra Expense you sustain causedby action of civil authority that prohib-its access to the "premises", providedthat both of the following apply:

(a) Access to the area immediatelysurrounding the damaged prop-erty is prohibited by civil authori-ty as a result of the damage; and

(b) The action of civil authority istaken in response to dangerousphysical conditions resultingfrom the damage or continuationof the Covered Cause of Lossthat caused the damage, or theaction is taken to enable a civilauthority to have unimpeded ac-cess to the damaged property.

This Civil Authority coverage for "Business Income" will beginimmediately after the time of that action and will apply for a periodof up to 30 days from the date ofthat action.

This Civil Authority coverage for Extra Expense will begin imme-diately after the time of that ac-tion and will end:

1) 30 consecutive days afterthe time of that action; or

2) When your "Business In-come" coverage ends;

whichever is later.

(4) Alterations and New Buildings

We will pay for the actual loss of"Business Income" you sustain andExtra Expense you incur due to direct"loss" at the "premises" caused by orresulting from any Covered Cause ofLoss to:



(a) New buildings or structures, whether complete or under con-struction;

(b) Alterations or additions to exist-ing buildings or structures; and

(c) Machinery, equipment, suppliesor building materials located onor within 1,000 feet of the "prem-ises" and:

1) Used in the construction, al-terations or additions; or

2) Incidental to the occupancyof new buildings.

If such direct "loss" delays the start of "operations", the "period of restora-tion" for "Business Income" Coverage will begin on the date "operations"would have begun if the direct "loss"had not occurred.

(5) Newly Purchased or Leased Loca-tions

We will pay the actual loss of "Busi-ness Income" you sustain and ExtraExpense you incur due to direct"loss" to Covered Property at any lo-cation you purchase or lease causedby or resulting from a Covered Causeof Loss. This coverage for the Newly Purchased or Leased Locations will end when any of the following first occurs:

(a) This policy expires;

(b) You report values to us;

(c) 90 days pass from the date youacquire or begin to construct theCovered Property.

(6) Extended Business Income

(a) For "Business Income" Other Than "Rental Value", if the nec-essary "suspension" of your "operations" produces a "Busi-ness Income" or Extra Expense"loss" payable under this Cover-age Part, we will pay for the ac-tual loss of "Business Income"you sustain and Extra Expenseyou incur during the period that:

1) Begins on the date property(except "finished stock") is actually repaired, rebuilt orreplaced and "operations"are resumed; and

2) Ends on the earlier of:

a) The date you could re-store your "operations", with reasonable speed, to the level which would generate the business income amount that would have existed if no direct "loss" had oc-curred; or

b) 60 consecutive days af-ter the date determined in b.(6)(a)1) above.

However, Extended BusinessIncome does not apply to loss of"Business Income" sustained orExtra Expense incurred as a re-sult of unfavorable businessconditions caused by the impact of the Covered Cause of Loss inthe area where the "premises"are located.

Loss of "Business Income" must be caused by direct "loss" at the"premises" caused by or result-ing from any Covered Cause of Loss.

(b) For "Rental Value", if the neces-sary "suspension" of your "oper-ations" produces a "Rental Val-ue" "loss" payable under thisCoverage Part, we will pay forthe actual loss of "Rental Value"you incur during the period that:

1) Begins on the date propertyis actually repaired, rebuiltor replaced and tenantability is restored; and

2) Ends on the earlier of:

a) The date you could re-store tenant occupan-cy, with reasonable speed, to the level which would generate the "Rental Value" thatwould have existed if no direct "loss" had oc-curred; or

b) 60 consecutive days af-ter the date determined in b.(6)(b)1) above.

However, ExtendedBusiness Income does not apply to loss of "Rental Value" incurredas a result of unfavora-ble business conditionscaused by the impact of the Covered Cause of



Loss in the area where the "premises" are lo-cated.

Loss of "Rental Value" must be caused by direct "loss" at the "premises" caused by or resulting from any CoveredCause of Loss.

(7) Interruption of Computer Opera-tions

(a) Subject to all provisions of thisCoverage Extension, you may extend the insurance that ap-plies to "Business Income" andExtra Expense to apply to a"suspension" of "operations"caused by an interruption incomputer operations due to de-struction or corruption of "elec-tronic data" as described inSECTION A. COVERAGE, 5.Coverage Extensions, d. Elec-tronic Data.

(b) Paragraph b.(7)(a) does not ap-ply to "loss" sustained or ex-pense incurred after the end ofthe "period of restoration", evenif the amount of insurance statedin Paragraph b.(7)(c) has notbeen exhausted.

(c) The most we will pay under Par-agraph b.(7) of this CoverageExtension is $2,500 for all "loss"sustained and expense incurredin the "coverage term", regard-less of the number of interrup-tions or the number of "premis-es" or computer systems in-volved. If loss payment relatingto the first interruption does notexhaust this amount, then thebalance is available for subse-quent interruptions in that "cov-erage term". A balance remain-ing at the end of a "coverageterm" does not carry over to thenext "coverage term". With re-spect to an interruption that be-gins in a "coverage term" andcontinues or results in additional"loss" or expense in a subse-quent "coverage term", all "loss"and expense is deemed to besustained in the "coverage term"in which the interruption began.

This $2,500 coverage for Inter-ruption of Computer Operationsdoes not increase the Limit ofInsurance provided in this Cov-erage Extension.

The most we will pay for "loss" in any oneoccurrence under this "Business Income"and Extra Expense Coverage Extensionis $25,000.

c. Collapse

The coverage provided under this Cover-age Extension applies only to an abrupt collapse as described and limited in Par-agraphs c.(1) through c.(7) below.

(1) For the purpose of this Coverage Ex-tension only, abrupt collapse means an abrupt falling down or caving in ofa building or structure or any part of abuilding or structure with the resultthat the building or structure or part of the building or structure cannot be occupied for its intended purpose.

(2) We will pay for direct "loss" to Cov-ered Property, caused by abrupt col-lapse of a building or structure or any part of a building or structure insuredunder this Coverage Part, or that contains Covered property insured under this Coverage Part, if such col-lapse is caused by one or more of the following:

(a) Building or structure decay thatis hidden from view, unless thepresence of such decay isknown or should reasonablyhave been known to an insuredprior to collapse;

(b) Insect or vermin damage that ishidden from view, unless thepresence of such damage isknown or should reasonablyhave been known to an insuredprior to collapse;

(c) Use of defective material ormethods in construction, remod-eling, or renovation if the abruptcollapse occurs during the course of the construction, re-modeling, or renovation.

(d) Use of defective materials or methods in construction, remod-eling, or renovation if the abruptcollapse occurs after construc-tion, remodeling, or renovation iscomplete but only if the collapseis caused in part by:

1) A cause of loss listed inParagraph c.(2)(a) or c.(2)(b) of this Coverage Extension;

2) One or more of the "speci-fied causes of loss";



3) Breakage of building glass;

4) Weight of people or person-al property; or

5) Weight of rain that collectson a roof.

(3) This Coverage Extension does notapply to:

(a) A building or structure or any part of a building or structurethat is in danger of falling downor caving in;

(b) A part of a building or structurethat is standing, even if it hasseparated from another part ofthe building or structure; or

(c) A building or structure that isstanding or any part of a buildingor structure that is standing,even if it shows evidence of cracking, bulging, sagging,bending, leaning, settling,shrinkage or expansion.

(4) With respect to the following proper-ty:

(a) Outdoor radio or television an-tennas (including satellite dish-es) and their lead-in wiring, masts or towers;

(b) Awnings, gutters and down-spouts;

(c) Yard fixtures;

(d) Outdoor swimming pools;

(e) Fences;

(f) Piers, wharves and docks;

(g) Beach or diving platforms; in-cluding their appurtenances;

(h) Retaining walls; and

(i) Walks, roadways and otherpaved surfaces;

if an abrupt collapse is caused by acause of loss listed in Paragraphc.(2)(a) through c.(2)(d), we will pay for "loss" to that property only if:

(a) Such "loss" is a direct result of the abrupt collapse of a buildingor structure insured under thisCoverage Part; and

(b) The property is Covered Proper-ty under this Coverage Part.

(5) If personal property abruptly fallsdown or caves in and such collapse

is not the result of abrupt collapse ofa building or structure, we will pay fordirect "loss" to Covered Propertycaused by such collapse of personal property only if:

(a) The collapse of personal proper-ty was caused by a Cause of Loss listed in c.(2)(a) throughc.(2)(d) of this Coverage Exten-sion;

(b) The personal property that col-lapses is inside a building; and

(c) The property that collapses isnot of a kind listed in Paragraphc.(4) above of this Coverage Ex-tension, regardless of whether that kind of property is consid-ered to be personal property orreal property.

The coverage stated in this Para-graph c.(5) does not apply to per-sonal property if marring and/orscratching is the only damage to that personal property caused by the col-lapse.

(6) This Coverage Extension does notapply to personal property that hasnot abruptly fallen down or caved in, even if the personal property showsevidence of cracking, bulging, sag-ging, bending, leaning, settling, shrinkage or expansion.

(7) This Coverage Extension shall notincrease the Limit of Insurance pro-vided in this Coverage Part.

(8) The term Covered Cause of Loss in-cludes Collapse as described and limited in Paragraphs c.(1) throughc.(7).

d. Electronic Data

(1) This Coverage Extension does notapply to your "stock" of prepackaged software, or to "electronic data"which is integrated in and operates or controls the building's elevator, light-ing, heating, ventilation, air condition-ing or security system.

(2) We will pay for the cost to replace orrestore "electronic data" which has been destroyed or corrupted by aCovered Cause of Loss that appliesto SECTION A. COVERAGE, 1. Covered Property, d. Business Personal Property. To the extent that "electronic data" is not replacedor restored, the "loss" will be valued at the cost of replacement of the me-



dia on which the "electronic data"was stored with blank media of sub-stantially identical type.

(3) For the purposes of this CoverageExtension only, Covered Causes of Loss include a virus, harmful code or similar instruction introduced into orenacted on a computer system (in-cluding "electronic data") or a net-work to which it is connected, that isdesigned to damage or destroy any part of the system or disrupt its nor-mal operation. However, there is no coverage for "loss" caused by or re-sulting from manipulation of a com-puter system (including "electronic data") by any employee, including atemporary or leased employee, or by an entity retained by you or for you to inspect, design, install, modify, main-tain, repair or replace that system or "electronic data".

(4) The most we will pay for all direct "loss" under this Coverage Exten-sion, regardless of the number of "premises" or computer systems in-volved, is $2,500. This limit is themost we will pay for the total of all di-rect "loss" arising out of all occur-rences that take place in the "cover-age term". If loss payment on the first occurrence does not exhaust thisamount, then the balance is available for subsequent "loss" sustained inthe "coverage term". A balance re-maining in a "coverage term" does not carry over to the next "coverageterm". With respect to an occurrence which begins in the "coverage term"and continues or results in additional "loss" in a subsequent "coverageterm", all "loss" is deemed to be sus-tained in the "coverage term" in which the occurrence began.

e. Exhibitions, Fairs or Trade Shows

We will pay for direct "loss" caused by a Covered Cause of Loss to your CoveredProperty, including covered property of others, while it is located at exhibitions, fairs or trade shows. This Coverage Ex-tension does not apply while CoveredProperty is in transit to or from the exhibi-tion, fair or trade show.

The most we will pay for "loss" in any oneoccurrence is $10,000.

The Limit of Insurance provided under this Coverage Extension does not apply per location.

f. Fences

We will pay for direct "loss" caused by a Covered Cause of Loss to your outdoor fences that are located within 1,000 feetof the "premises" and not otherwise in-sured as Covered Property in this Cover-age Part.


g. Fungi, Wet Rot, Dry Rot, and Bacteria -Limited Coverage

(1) The coverage described in Para-graphs g.(2) and g.(3) of this Cover-age Extension only apply when the "fungi", wet or dry rot or bacteria isthe result of a Covered Cause ofLoss that occurs during the "cover-age term" and only if all reasonable means were used to save and pre-serve the property from further dam-age at the time of and after that oc-currence.

(2) We will pay for "loss" by "fungi", wetor dry rot or bacteria. As used in thisCoverage Extension, the term "loss"means:

(a) Direct "loss" to Covered Property caused by "fungi", wet or dry rot or bacteria, including the cost ofremoval of the "fungi", wet or dry rot or bacteria;

(b) The cost to tear out and replaceany part of the building or otherproperty as needed to gain ac-cess to the "fungi", wet or dry rot or bacteria; and

(c) The cost of testing performed af-ter removal, repair, replacement or restoration of the damagedproperty is completed, providedthere is a reason to believe that"fungi", wet or dry rot or bacteriaare present.

(3) For the coverage described underParagraph g.(2) of this Coverage Ex-tension, the most we will pay for "loss", regardless of the number of claims, is $15,000. This limit is themost we will pay for the total of all "loss" arising out of all occurrencesthat take place in the "coverageterm". With respect to a particular occurrence of "loss" which results in "fungi", wet or dry rot or bacteria, we will not pay more than a total of$15,000 even if the "fungi", wet or dry rot or bacteria continues to be pre-



sent or active, or recurs, in a subse-quent "coverage term".

(4) The coverage provided under thisCoverage Extension does not in-crease the applicable Limit of Insur-ance on any Covered Property. If a particular occurrence results in "loss"by "fungi", wet or dry rot or bacteria, and other "loss", we will not pay more, for the total of all "loss" thanthe applicable Limit of Insurance onthe affected Covered Property.

If there is covered "loss" to CoveredProperty, not caused by "fungi", wetor dry rot or bacteria, loss paymentwill not be limited by the terms of thisCoverage Extension, except to theextent that "fungi", wet or dry rot orbacteria causes an increase in the"loss". Any such increase in the"loss" will be subject to the terms ofthis Coverage Extension.

(5) The terms of this Coverage Exten-sion do not increase or reduce thecoverage provided under:

(a) SECTION A. COVERAGE, 5.Coverage Extensions, c. Col-lapse;

(b) SECTION A. COVERAGE, 5.Coverage Extensions, s. Wa-ter, Other Liquids, Powder orMolten Material Damage

(6) The following (6)(a) or (6)(b) applyonly if "Business Income", "Rental Value", or Extra Expense Coverageapplies to the "premises" and only if the "suspension" of "operations" sat-isfies all terms and conditions of the applicable "Business Income","Rental Value", or Extra Expense Coverage.

(a) If the "loss" which resulted in"fungi", wet or dry rot or bacteriadoes not in itself necessitate a"suspension" of "operations", butsuch "suspension" is necessary due to "loss" to property causedby "fungi", wet or dry rot or bac-teria, then our payment under"Business Income" and/or ExtraExpense is limited to the amount of "loss" and/or expense sus-tained in a period of not more than 30 days. The days need notbe consecutive.

(b) If a covered "suspension" of"operations" was caused by "loss" other than "fungi", wet or dry rot or bacteria but remedia-

tion of "fungi", wet or dry rot orbacteria prolongs the "period ofrestoration", we will pay for "loss" and/or expense sustainedduring the delay (regardless of when such a delay occurs duringthe "period of restoration"), but such coverage is limited to 30days. The days need not beconsecutive.

(7) This Coverage Extension does notapply to lawns, trees, plants or shrubs that are part of any vegetativeroof.

h. Glass

(1) If a Covered Cause of Loss occurs to building glass that is Covered Prop-erty, we will also pay necessary ex-penses you incur to:

(a) Put up temporary plates or board up openings if repair orreplacement of damaged glassis delayed;

(b) Repair or replace encasingframes;

(c) Remove or replace obstructions(except expenses to remove orreplace window displays); and

(d) Repair or replace alarm tapes.

(2) If you are a tenant at a covered"premises" and:

(a) The building you occupy is not Covered Property; and

(b) You are legally liable for direct "loss" to the building glass in thatbuilding;

such building glass, for the purposesof this Paragraph h.(2), is CoveredProperty. The most we will pay for "loss" in any one occurrence is $5,000. This building glass is subjectto the building deductible as de-scribed in SECTION C. DEDUCTI-BLE.

(3) For the purposes of this CoverageExtension only, SECTION A. COV-ERAGE, 3. Covered Causes ofLoss, b. Exclusions does not apply except as follows:

(a) Exclusion (1)(b) Earth Move-ment;

(b) Exclusion (1)(c) GovernmentalAction;



(c) Exclusion (1)(d) Nuclear Haz-ard;

(d) Exclusion (1)(f) War and Mili-tary Action;

(e) Exclusion (2)(d)1) Wear andtear; and

(f) As listed in Exclusion (2)(d)2): Rust or other corrosion, hiddenor latent defect or any quality inproperty that causes it to dam-age or destroy itself.

i. Newly Purchased, Leased or Con-structed Property

(1) Buildings

If buildings are Covered Property inthis Coverage Part, we will pay for di-rect "loss" caused by a CoveredCause of Loss to:

(a) Your new buildings or additionswhile being built on the "premis-es";

(b) Buildings you newly purchase or become newly required to insureby written contract that are:

1) Intended for use by you asa warehouse; or

2) Similarly used by you asbuildings insured under thisCoverage Part.

The most we will pay for "loss" in anyone occurrence to a building underthis Coverage Extension is 1,000,000for each building.

(2) Business Personal Property

(a) If business personal property isCovered Property in this Cover-age Part, we will pay for direct "loss" caused by a CoveredCause of Loss to business per-sonal property you newly pur-chase or are required to insureby written contract:

1) While located at buildingsdescribed in Paragrapha.(1) of this Coverage Ex-tension; or

2) While located in a leasedbuilding or space thereinthat you are not required to insure. Such lease must befor a period of 12 consecu-tive months or longer.

(b) Paragraph a.(2)(a) of this Cov-erage Extension does not apply to:

1) Any business personalproperty covered underBUILDING AND PERSON-AL PROPERTY COVER-AGE FORM, SECTION A.COVERAGE, 5. CoverageExtensions, e. Exhibi-tions, Fairs, or TradeShows or m. Property Off Premises;

2) Any business personalproperty that is covered un-der BUILDING AND PER-SONAL PROPERTY COV-ERAGE FORM, SECTION A. COVERAGE, 5. Cover-age Extensions, p. Trans-portation or is otherwiseconsidered to be in-transitto or from a "premises".

3) Business personal propertyof others that is temporarilyin your possession in thecourse of installing or per-forming work on such prop-erty, or temporarily in your possession in the course ofyour manufacturing orwholesaling activities.

The most we will pay for "loss" in anyone occurrence to your BusinessPersonal Property under this Cover-age Extension is $500,000 at eachbuilding.

(3) Period of Coverage

Coverage provided under this Cover-age Extension will end when any of the following first occurs:

(a) This policy expires,

(b) For buildings described in Para-graph (1)(a) of this CoverageExtension, 90 days pass from the date you begin constructionon that part of the building thatwould qualify as Covered Prop-erty;

(c) For business property describedin Paragraph (1)(b) and Para-graph (2)(a)1), 90 days afteryour purchase or lease;

(d) For business personal propertydescribed in Paragraph (2)(a)2),90 days from the effective date



of the lease of the buildingspace in the building; or

(e) You report values to us.

We will charge you additional premium for values reported from the date you leaseor purchase the property, or begin con-struction on that part of the building that would qualify as Covered Property.

j. Nonowned Building Damage

If you are a tenant at a covered "premis-es" and:

(1) The building you occupy is not Cov-ered Property; and

(2) You are legally liable for direct "loss"to that building;

We will pay for direct "loss" to that build-ing caused by burglary, robbery, theft or attempted theft.

This Coverage Extension does not apply to:

(1) Glass, including lettering and orna-mentation, and also necessary:

(a) Repair or replacement of encas-ing frames or alarm tapes; and

(b) Expenses incurred to board up openings or remove or replaceobstruction.

(2) Building materials and equipment removed from the "premises".

This Coverage Extension does not apply if you have purchased other insurance inyour name on the building you occupy asrequired by the lease.


k. Outdoor Property

We will pay for direct "loss" caused by a Covered Cause of Loss to the followingtypes of your Covered Property:

(1) Radio antennas, television antennasor satellite dishes (including theirlead-in wiring, masts and towers);

(2) Trees, shrubs or plants (other thantrees, shrubs or plants which are"stock" or part of a vegetative roof), including debris removal ; and

(3) If you are a tenant, to your awnings that are attached to a building youoccupy;

but only if caused by or resulting from any of the following causes of loss if they are included as Covered Causes of Loss un-der this Coverage Part:

(1) Fire;

(2) Lightning;

(3) Explosion;

(4) Riot or Civil Commotion;

(5) Aircraft; or

(6) Falling objects.

We will pay for the debris removal ex-penses of the above type property thatare not your Covered Property if such de-bris is on your "premises" due to the Cov-ered Causes of Loss described in thisCoverage Extension. If you are a tenant, we do not pay debris removal expensesfor trees, plants or shrubs owned by the landlord or owner of the building you oc-cupy.

No other coverage for debris removal ex-penses provided in this Coverage Part applies to this Outdoor Property Cover-age Extension.

The most we will pay for "loss" in any oneoccurrence under this Coverage Exten-sion is $5,000, but not more than $1,000for any one tree, shrub or plant.

l. Personal Effects

If business personal property is Covered Property in this Coverage Part, we willpay for direct "loss" caused by a CoveredCause of Loss to personal effects owned by:

(1) You, your officers, or your partners,or if you are a limited liability compa-ny, your members or your managers; or

(2) Your employees (including temporary and leased employees), includingtools owned by your employees thatare used in your business. However, employee tools are not covered for theft.

This Coverage Extension does not apply to "money" or "securities".

If theft is included as a Covered Cause ofLoss under this Coverage Part, then thisCoverage Extension has a $500 per oc-currence limitation for direct "loss" bytheft.




m. Property Off Premises

(1) We will pay for direct "loss" causedby a Covered Cause of Loss to your Covered Property, including covered personal property of others, while it isaway from the "premises", if it is:

(a) Temporarily at a location you donot own, lease or operate; or

(b) In storage at a location youlease, provided the lease wasexecuted for the first time after the beginning of the current"coverage term".

(2) This Coverage Extension does notapply to Covered Property at exhibi-tions, fairs, trade show, or in transit.


The Limit of Insurance provided by thisCoverage Extension does not apply per location.

n. Signs

We will pay for direct "loss" caused by a Covered Cause of Loss, including debrisremoval expense, to signs not otherwiseinsured by this Coverage Part.



o. Trailers (Nonowned Detached)

(1) If business personal property is Cov-ered Property in this Coverage Part,we will pay for direct "loss" caused bya Covered Cause of Loss to trailersthat you do not own, provided that:

(a) The trailer is used in your busi-ness;

(b) The trailer is temporarily in your care, custody or control at the"premises"; and

(c) You have a contractual respon-sibility to pay for "loss" to thetrailer.

(2) We will not pay for any direct "loss"that occurs:

(a) While the trailer is attached toany motor vehicle or motorizedconveyance, whether or not themotor vehicle or motorized con-veyance is in motion;

(b) During hitching or unhitchingoperations, or when a trailer be-comes accidentally unhitchedfrom a motor vehicle or motor-ized conveyance.

(3) This insurance is excess over theamount due, whether you can collect on it or not, from any other insurancecovering such property.

(4) This Coverage Extension does notapply to any property inside or on thetrailer.


p. Transportation

We will pay for direct "loss" caused by a Covered Cause of Loss to your CoveredProperty, including covered personal property of others while it is in or on a ve-hicle, including loading and unloading of the property.



q. Utility Services

We will pay for:

(1) Direct "loss" to Covered Property atyour "premises" except for direct "loss" resulting from the partial orcomplete failure of Wastewater Re-moval Services; and

(2) Loss of "Business Income" you sus-tain and Extra Expenses you incur asprovided in SECTION A. COVER-AGE, 5. Coverage Extensions, b.Business Income and Extra Ex-pense;

caused by or resulting from the partial or complete failure of utility services to the"premises".

The partial or complete failure of the utilityservices listed below must be caused by direct "loss" caused by a Covered Cause of Loss to the following property:

(1) Power Supply Property, meaning thefollowing types of property supplying



electricity, steam or natural gas to the"premises":

(a) Utility generating plants;

(b) Switching stations;

(c) Substations;

(d) Transformers; and

(e) Transmission, distribution, ser-vice, or similar lines, excludingall such overhead lines of any type.

(2) Water Supply Property, meaning the following types of property supplyingwater to the "premises":

(a) Pumping stations; and

(b) Water mains.

(3) Wastewater Removal Property, meaning a utility system for removingwastewater and sewage from the "premises", other than a system de-signed primarily for draining storm water. The utility property includessewer mains, pumping stations and similar equipment for moving the ef-fluent to a holding, treatment or dis-posal facility, and includes such facili-ties. Coverage under this CoverageExtension does not apply to interrup-tion in service caused by or resultingfrom a discharge of water or sewagedue to heavy rainfall or flooding.

(4) Communication Supply Property, meaning property supplying commu-nication services, including servicerelating to Internet access or access to any electronic, cellular or satellitenetwork; telephone, radio, microwaveor television services to the "premis-es", such as:

(a) Communication transmission,distribution, service or similar lines, including fiber optic lines,excluding all such overhead lines of any type;

(b) Coaxial cables; and

(c) Microwave radio relays, exclud-ing satellites.

This Coverage Extension does not apply to "loss" to "electronic data", including de-struction or corruption of "electronic data".

The most we will pay for all direct "loss"and loss of "Business Income" and ExtraExpense in any one occurrence is$25,000.

r. Valuable Papers and Records


(1) Subject to Paragraph r.(3) of this Coverage Extension, we will pay necessary costs you incur to re-search, replace or restore lost ordamaged information on "valuablepapers and records" that are your property or the property of others inyour care, custody or control; result-ing from direct "loss" caused by a Covered Cause of Loss.

(2) Coverage does not apply to:

(a) Property that cannot be replacedwith other property of like kindand quality;

(b) Property held as samples or for delivery after sale;

(c) Property in storage away from the "premises", except as pro-vided in Paragraph r.(4)(b) of this Coverage Extension;

(d) Contraband, or property in thecourse of illegal transportation ortrade;

(e) "Valuable papers and records" inthe form of "electronic data", in-cluding the materials on whichthe "electronic data" is recorded.

(3) The most we will pay for "loss" is the least of the following amounts:

(a) The cost of reasonably restoringthe damaged property to itscondition immediately before the"loss";

(b) The cost of replacing the dam-aged property with substantiallyidentical property; or

(c) The actual cash value of thedamaged property at the time of "loss".

However, we will not pay for "loss"unless or until the damaged property is actually replaced or restored; andthen only if such replacement or res-toration occurs within 36 months from the date of direct "loss".

(4) We will extend coverage to include:

(a) Removal

If you give us written notice with-in 30 days of removal of your"valuable papers and records"



because of imminent danger ofdirect "loss" from a CoveredCause of Loss, we will pay fordirect "loss" while they are:

1) At a safe place away from your "premises"; or

2) Being taken to and returnedfrom that place.

This Removal coverage is in-cluded within the Limits of Insur-ance applicable to this CoverageExtension.

(b) Away From Your Premises

We will pay up to $5,000 in anyone occurrence, regardless of the number of locations, for di-rect "loss" caused by a CoveredCause of Loss to "valuable pa-pers and records" while they areaway from your "premises".

This Away From Premises limitis in addition to the Limit of In-surance applicable to this Cov-erage Extension.

(5) SECTION A. COVERAGE, 3. Cov-ered Causes of Loss, b. Exclu-sions does not apply to this Cover-age Extension except as follows:

(a) Exclusion (1)(c) GovernmentalAction;

(b) Exclusion (1)(d) Nuclear Haz-ard; and

(c) Exclusion (1)(f) War and Mili-tary Action.

(6) In addition to Paragraph r.(5) of thisCoverage Extension, we will not pay for direct "loss" resulting from any ofthe following:

(a) Dishonest or criminal acts by:

1) You, your partners, employ-ees, directors, trustees orauthorized representatives;

2) A manager or a member ifyou are a limited liabilitycompany;

3) Anyone else with an interestin the records of accounts receivable, or their employ-ees or authorized repre-sentatives; or

4) Anyone else entrusted withthe records of accounts re-ceivable for any purpose.

This Paragraph r.(6)(a) applieswhether or not such persons areacting alone or in collusion withother persons or such act occurs during the hours of employment.

However, this Paragraph r.(6)(a)does not apply to dishonest actsof a carrier for hire or to acts of destruction by your employees.However, theft by employees isstill not covered.

(b) Errors or omissions in pro-cessing or copying. However, we will pay for that portion of di-rect "loss" caused by resultingfire or explosion if these causesof loss would be covered by thisCoverage Part.

(c) Electrical or magnetic injury, dis-turbance or erasure of electronicrecordings. But we will pay fordirect "loss" caused by lightning.

(d) Voluntary parting with any prop-erty by you or anyone entrustedwith the property if induced to doso by any fraudulent scheme, trick, device or false pretense.


s. Water Damage, Other Liquids, Powderor Molten Material Damage

If a covered direct "loss" to which this in-surance applies was caused by or result-ed from water or other liquid, powder or molten material damage, we will also pay the cost to tear out and replace any oth-erwise undamaged part of the building orstructure to repair damage to the system or appliance from which the water or oth-er substance escapes.

SECTION B. LIMITS OF INSURANCE

The most we will pay for "loss" in any one occur-rence is the applicable Limit of Insurance shown in the Declarations, except as amended in SECTION A. COVERAGE, 3. Covered Causes of Loss, c. Limitations, 4. Additional Coverages, and 5.Coverage Extensions.

SECTION C. DEDUCTIBLE

Except as otherwise provided; in any one occur-rence of direct "loss" we will first reduce theamount of "loss" if required by SECTION E. ADDI-TIONAL CONDITIONS, 1. Coinsurance or SEC-TION F. OPTIONAL COVERAGES, 1. AgreedValue. If the adjusted amount of direct "loss" isless than or equal to the Deductible, we will notpay for that direct "loss". If the adjusted amount ofdirect "loss" exceeds the Deductible, we will then



subtract the Deductible from the adjusted amountof direct "loss", and will pay the resulting amount or the Limit of Insurance, whichever is less.

When the occurrence involves direct "loss" to morethan one item of Covered Property and separateLimits of Insurance apply, the losses will not becombined in determining application of the Deduct-ible. But the Deductible will be applied only onceper occurrence.

1. Deductible Examples

Example No. 1:

(This example assumes there is no coinsur-ance penalty as outlined in SECTION E. AD-DITIONAL CONDITIONS, 1. Coinsurance).

Deductible: $250

Limit of Insurance - Bldg. 1: $60,000Limit of Insurance - Bldg. 2: $80,000

"Loss" to Bldg. 1: $60,100"Loss" to Bldg. 2: $90,000

The amount of "loss" to Bldg. 1 ($60,100) isless than the sum ($60,250) of the Limit of In-surance applicable to Bldg. 1 plus the Deduct-ible.

The Deductible will be subtracted from the amount of "loss" in calculating the "loss" pay-able for Bldg. 1:

$60,100 - $250 = $59,850 "Loss" Payable -Bldg. 1

The Deductible applies once per occurrence and therefore is not subtracted in determining the amount of "loss" payable for Bldg. 2. "Loss" payable for Bldg. 2 is the Limit of In-surance of $80,000.

Total amount of "loss" payable: $59,850 +80,000 = $139,850.

Example No. 2:

(This example also assumes there is no coin-surance penalty).

The Deductible and Limits of Insurance are the same as those in Example No. 1:

"Loss" to Bldg. 1: $70,000 (Exceeds Limit of Insurance plus Deductible)

"Loss" to Bldg. 2: $90,000 (Exceeds Limit of Insurance plus Deductible)

"Loss" Payable - Bldg. 1: $60,000 (Limit ofInsurance)

"Loss" Payable - Bldg. 2: $80,000 (Limit ofInsurance)

Total amount of "loss" payable: $140,000.

2. Glass Deductible

When direct "loss" to the building you occupy only involves building glass, the Deductible for that "loss" will be the lesser of:

a. $500; or

b. The Deductible shown in the Declarationsfor that Covered Property.

SECTION D. LOSS CONDITIONS

The following conditions apply in addition to theCOMMON POLICY CONDITIONS and the COM-MERCIAL PROPERTY CONDITIONS.

1. Abandonment

There can be no abandonment of any property to us.

2. Appraisal

If we and you disagree on the value of the property, the amount of Net Income and oper-ating expense, or the amount of "loss", either may make written demand for an appraisal of the "loss". In this event, each party will select a competent and impartial appraiser. The twoappraisers will select an umpire. If they cannotagree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property, the amount of Net Income andoperating expense, and amount of "loss". If they fail to agree, they will submit their differ-ences to the umpire. A decision agreed to byany two will be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal and umpire equally.

If there is an appraisal, we still retain our rightto deny the claim.

3. Duties in the Event of Loss or Damage

a. In the event of "loss" to Covered Property,you must see that the following are donein order for coverage to apply:

(1) Notify the police if a law may havebeen broken.

(2) Give us prompt notice of the "loss". Include a description of the property involved.

(3) As soon as possible, give us a de-scription of how, when and where the "loss" occurred.

(4) Take all reasonable steps to protectthe Covered Property from further damage. If feasible, set the damaged property aside and in the best possi-ble order for examination. Keep a



record of your expenses necessary to protect the Covered Property for consideration in the settlement of the claim. This will not increase your limit of insurance. However, in no eventwill we pay for any subsequent "loss"resulting from a cause of loss that isnot a Covered Cause of Loss.

(5) At our request, give us complete in-ventories of the damaged and un-damaged property. Include quanti-ties, costs, values and amount of "loss" claimed.

(6) As often as may be reasonably re-quired, permit us to inspect the prop-erty proving the "loss" and examine your books and records.

Also permit us to take samples of damaged and undamaged property for inspection, testing and analysisand permit us to make copies from your books and records.

(7) Submit a signed sworn proof of losscontaining the information we requestto investigate the claim. You must dothis within 60 days after our request. We will supply you with the neces-sary forms.

(8) Cooperate with us in the investigationor settlement of the claim.

(9) If you intend to continue your busi-ness, you must resume all or part ofyour "operations" as quickly as pos-sible.

b. We may examine any insured under oath, while not in the presence of any other in-sured and at such times as may be rea-sonably required about any matter relat-ing to this insurance or the claim, includ-ing an insured's books and records. In the event of an examination, an insured's an-swers must be signed.

4. Loss Payment

a. In the event of "loss" insured by this Cov-erage Part, at our option, we will either:

(1) Pay the value of lost or damaged property;

(2) Pay the cost of repairing or replacingthe lost or damaged property;

(3) Take all or any part of the property at an agreed or appraised value; or

(4) Repair, rebuild or replace the proper-ty with other property of like kind andquality.

We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with theapplicable terms of SECTION D. LOSS CONDITIONS, 7. Valuation or any appli-cable provision that amends or super-cedes this valuation condition.

b. The cost of repair or replacement doesnot include the increased cost attributableto enforcement of or compliance with any ordinance or law regulating the construc-tion, use or repair of any property, except as provided in SECTION A. COVERAGE,4. Additional Coverages, g. Ordinanceor Law.

c. We will give notice of our intentions within30 days after we receive the sworn proofof loss.

d. We will not pay you more than your finan-cial interest in the Covered Property.

e. We may adjust "losses" with the ownersof lost or damaged property if other than you. If we pay the owners, such paymentswill satisfy your claims against us for theowners' property. We will not pay the owners more than their financial interest in the Covered Property.

f. Our payment for "loss" to personal prop-erty of others and personal effects will on-ly be for the account of the owner of theproperty.

g. We may elect to defend you against suitsarising from claims of owners of property. We will do this at our expense.

h. We will pay for insured "loss" within 30 days after we receive the sworn proof of loss if you have complied with all of theterms of this Coverage Part; and

(1) We have reached agreement with you on the amount of "loss"; or

(2) An appraisal award has been made.

i. Loss Payment - Ordinance or Law.

With respect to SECTION A. COVER-AGE, 4. Additional Coverages, g. Ordi-nance or Law:

(1) Loss of Use of Undamaged Partsof Building

When there is a loss in value of anundamaged portion of a building orstructure to which this coverage ap-plies, the loss payment for that build-ing, including damaged and undam-aged portions, will be determined asfollows:



(a) If BUILDING AND PERSONALPROPERTY COVERAGEFORM, SECTION F. OPTIONALCOVERAGES, 3. Replacement Cost applies and the property isrepaired or replaced, on thesame "premises" or another "premises"; we will not pay more than the lesser of:

1) The amount you actuallyspend to repair, rebuild orreconstruct the building, butnot for more than theamount it would cost to re-store the building on thesame "premises" and to the same height, floor area,style and comparable quali-ty of the original property in-sured; or

2) The limit of insurance indi-cated in SECTION A.COVERAGE, 4. Additional Coverages g. Ordinance or Law for Loss of Use ofUndamaged Parts ofBuilding for the buildingthat has suffered "loss".

(b) If BUILDING AND PERSONALPROPERTY COVERAGEFORM, SECTION F. OPTIONALCOVERAGES, 3. Replacement Cost applies and the property isnot repaired or replaced, or if theReplacement Cost CoverageOption does not apply, we willnot pay more than the lesser of:

1) The "actual cash value" of the building at the time of "loss"; or

2) The limit of insurance indi-cated in SECTION A.COVERAGE, 4. Additional Coverages, g. Ordinance or Law for Loss of Use ofUndamaged Parts ofBuilding for the buildingthat has suffered "loss".

(2) Demolition Costs

Loss payment for Demolition Costswill be determined as follows:

We will not pay more than the lesser of the following:

(a) The amount you actually spendto demolish and clear the site ofthe "premises"; or

(b) The limit of insurance indicatedin SECTION A. COVERAGE, 4.Additional Coverages, g. Or-dinance or Law for Demolition Costs for the building that hassuffered "loss".

(3) Increased Costs of Construction

Loss payment for Increased Costsof Construction will be determined as follows:

(a) We will not pay for the increasedcost of construction until theproperty is actually repaired orreplaced, at the same "premis-es" or another location and un-less the repairs or replacement are made as soon as reasonablypossible after the direct "loss", not to exceed two years. We may extend this period in writingduring the two years.

(b) If the building is repaired or re-placed at the same "premises", or if you elect to rebuild at an-other "premises", the most wewill pay for the Increased cost of construction is the lesser of:

1) The increased cost of con-struction at the same "prem-ises"; or

2) The limit of insurance indi-cated in SECTION A.COVERAGE, 4. Additional Coverages, g. Ordinanceor Law for IncreasedCosts of Construction for the building that has suf-fered "loss".

(c) If the ordinance or law requiresrelocation to another location the most we will pay for the in-creased cost of construction isthe lesser of:

1) The increased cost of con-struction at the new loca-tion; or

2) The limit of insurance indi-cated in SECTION A.COVERAGE, 4. Additional Coverages, g. Ordinanceor Law for IncreasedCosts of Construction for the building that has suf-fered "loss".

(4) Proportional Payments

If the building or structure sustainsboth direct "loss" that is covered un-



der this Coverage Part and direct"loss" that is not covered under this Coverage Part; and as a result of the direct "loss" in its entirety you are re-quired to comply with the ordinanceor law, we will not pay the full amount of direct "loss" otherwise payable un-der the terms of SECTION A. COV-ERAGE, 4. Additional Coverages, g. Ordinance or Law. Instead, wewill pay a proportion of such direct "loss"; meaning the proportion that the covered direct "loss" bears to thetotal direct "loss".

j. Loss Determination - Business Incomeand Extra Expense

With respect to SECTION A. COVER-AGE, 5. Coverage Extensions, b. Busi-ness Income and Extra Expense,

(1) The amount of "Business Income"and "Rental Value" "loss" will be de-termined based on:

(a) The Net Income of the businessbefore the direct "loss" occurred;

(b) The likely Net Income of thebusiness if no direct "loss" hadoccurred, but not including anyNet Income that would likelyhave been earned as a result ofan increase in the volume of business due to favorable busi-ness conditions caused by theimpact of the Covered Cause ofLoss on customers or on otherbusinesses;

(c) The operating expenses, includ-ing payroll expenses, necessary to resume "operations" with thesame quality of service that ex-isted just before the direct "loss"; and

(d) Other relevant sources of infor-mation, including;

1) Your financial records andaccounting procedures;

2) Bills, invoices and othervouchers; and

3) Deeds, liens or contracts.

(2) The amount of Extra Expense will bedetermined based on:

(a) All expenses that exceed thenormal operating expenses thatwould have been incurred by"operations" during the "period of restoration" if no direct "loss"

had occurred. We will deduct from the total of such expenses:

1) The salvage value that re-mains of any propertybought for temporary useduring the "period of resto-ration", once "operations"are resumed; and

2) Any Extra Expense that ispaid for by other insurance,except for insurance that iswritten subject to the sameplan, terms, conditions andprovisions as this insurance;and

(b) Necessary expenses that reducethe "Business Income" and"Rental Value" "loss" that other-wise would have been incurred.

(3) Resumption of Operations

We will reduce the amount of your:

(a) "Business Income" and "RentalValue" "loss", other than ExtraExpense, to the extent you canresume your "operations", inwhole or in part, by using dam-aged or undamaged property(including merchandise or "stock") at the "premises" or elsewhere.

(b) Extra Expense "loss" to the ex-tent you can return "operations"to normal and discontinue such Extra Expense.

(4) If you do not resume "operations", or do not resume "operations" as quick-ly as possible, we will pay based onthe length of time it would have taken to resume "operations" as quickly aspossible.

k. Party Walls

A party wall is a wall that separates and iscommon to adjoining buildings that areowned by different parties. In settlingcovered losses involving a party wall, we will pay a proportion of the "loss" to theparty wall based on your interest in the wall in proportion to the interest of the owner of the adjoining building. However, if you elect to repair or replace your build-ing and the owner of the adjoining build-ing elects not to repair or replace thatbuilding, we will pay you the full value of the "loss" to the party wall, subject to all applicable policy provisions all other pro-visions of this SECTION D. LOSS CON-DITIONS, 4. Loss Payment including:



(1) Limit of Insurance shown in the Dec-larations;

(2) SECTION D. LOSS CONDITIONS, 7. Valuation; and

(3) SECTION E. ADDITIONAL CONDI-TIONS, 1. Coinsurance.

Our payment under the provisions of thisparagraph does not alter any right of sub-rogation we may have against any entity,including the owner or insurer of the ad-joining building, and does not alter theterms of COMMERCIAL PROPERTY CONDITIONS, I. Transfer Of Rights Of Recovery Against Others To Us in this Coverage Part.

5. Recovered Property

If either you or we recover any property afterloss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the ex-penses to repair the recovered property, sub-ject to the Limit of Insurance.

6. Vacancy

a. Description of Terms

(1) As used in this Vacancy Condition,the term building and the term vacant have the meanings set forth in (1)(a)and (1)(b) below:

(a) When this Coverage Part is is-sued to a tenant, and with re-spect to that tenant's interest inCovered Property, buildingmeans the unit or suite rented orleased to the tenant. Such build-ing is vacant when it does not contain enough business per-sonal property to conduct cus-tomary operations.

(b) When this Coverage Part is is-sued to the owner or generallessee of a building, buildingmeans the entire building. Suchbuilding is vacant unless at least31% of its total square footage is:

1) Rented to a lessee or sub-lessee and used by them toconduct their customary op-erations; or

2) Used by the building ownerto conduct customary oper-ations.

(2) Buildings under construction or reno-vation are not considered vacant.

b. Vacancy Provisions

If the building where direct "loss" occurshas been vacant for more than 60 con-secutive days before that "loss", we will:

(1) Not pay for any "loss" caused by any of the following, even if they are Covered Causes of Loss:

(a) Vandalism;

(b) Sprinkler leakage, unless youhave protected the system against freezing;

(c) Building glass breakage;

(d) Water damage;

(e) Theft; or

(f) Attempted theft.

(2) Reduce the amount we would other-wise pay for the "loss" by 15% withrespect to Covered Causes of Loss other than those listed in b.(1)(a)through b.(1)(f) of this Loss Condi-tion.

7. Valuation

We will determine the value of Covered Prop-erty in the event of direct "loss" as follows:

a. At "Actual Cash Value" as of the time ofdirect "loss", except as provided in b., c.,d., and e. below.

b. If the Limit of Insurance for Building satis-fies SECTION E. ADDITIONAL CONDI-TIONS, 1. Coinsurance, and the cost torepair or replace the damaged building property is $2,500 or less, we will pay the cost of building repairs or replacement.

The cost of building repairs or replace-ment does not include the increased cost attributable to enforcement of or compli-ance with any ordinance or law regulating the construction, use or repair of any property. However, the following property will be valued at actual cash value evenwhen attached to the building:

(1) Awnings or floor coverings;

(2) Appliances for refrigerating, ventilat-ing, cooking, dishwashing or launder-ing; or

(3) Outdoor equipment or furniture.

c. "Stock" you have sold but not delivered at the selling price less discounts and ex-penses you otherwise would have had.



d. Glass at the cost of replacement withsafety glazing material if required by law.

e. Tenant's Improvements and Bettermentsat:

(1) Replacement Cost of the lost ordamaged property if you make re-pairs promptly.

(2) A proportion of your original cost ifyou do not make repairs promptly. We will determine the proportionate value as follows:

(a) Multiply the original cost by thenumber of days from the "loss"or damage to the expiration ofthe lease; and

(b) Divide the amount determined in(a) above by the number of daysfrom the installation of improve-ments to the expiration of thelease.

If your lease contains a renewal op-tion, the expiration of the renewal op-tion period will replace the expirationof the lease in this procedure.

(3) Nothing if others pay for repairs orreplacement.

(4) For the purposes of valuation, ten-ants' improvements and betterments are not considered to be the personal property of others.

SECTION E. ADDITIONAL CONDITIONS


1. Coinsurance

If a Coinsurance percentage is shown in the Declarations, the following condition applies.

a. We will not pay the full amount of any "loss" if the value of Covered Property atthe time of direct "loss" times the Coin-surance percentage shown for it in theDeclarations is greater than the Limit ofInsurance for the property.

Instead, we will determine the most wewill pay using the following steps:

(1) Multiply the value of Covered Proper-ty at the time of direct "loss" by theCoinsurance percentage;

(2) Divide the Limit of Insurance of the property by the figure determined instep (1);

(3) Multiply to the total amount of "loss", before the application of any deducti-ble, by the figure determined in step(2); and

(4) Subtract the deductible from the fig-ure determined in step (3).

We will pay the amount determined in step (4) or the Limit of Insurance, which-ever is less. For the remainder, you will either have to rely on other insurance or absorb the "loss" yourself.

Example No. 1 (Underinsurance):

The value of the property is: $250,000The coinsurance percentage is: 80%The Limit of Insurance is: $100,000The Deductible is: $250The amount of "loss" is: $40,000

Step (1):

$250,000 X 80% = $200,000 (theminimum amount of insurance tomeet your Coinsurance require-ments)

Step (2):

$100,000 divided by $200,000 = .50

Step (3):

$40,000 X .50 = $20,000

Step (4):

$20,000 - $250 = $19,750.

We will pay no more than $19,750. The remaining $20,250 is not covered.

Example No. 2 (Adequate Insurance):

The value of the property is: $250,000The coinsurance percentage is: 80%The Limit of Insurance is: $200,000The Deductible is: $250The amount of "loss" is: $40,000

Step (1):

$250,000 X 80% = $200,000 (theminimum amount of insurance tomeet your Coinsurance require-ments)

Step (2):

$200,000 : $200,000 = 1.00

Step (3):

$40,000 X 1.00 = $40,000

Step (4):

$40,000 - $250 = $39,750.



We will pay no more than $39,750 "loss"in excess of the Deductible. No penaltyapplies.

b. If one Limit of Insurance applies to two or more separate items, this condition willapply to the total of all property to which the limit applies.

Example No. 3:

The values of the property are:

Bldg. at Location No. 1: $75,000Bldg. at Location No. 2: $100,000

Personal Property atLocation No. 2: $75,000

250,000

The coinsurance percentage is: 90%The Limit of Insurance for

Buildings and Personal

Property at LocationNos. 1 and 2 is: $180,000

The Deductible is: $1,000The amount of "loss" is:

Bldg. at Location No. 2: $30,000Personal Property atLocation No. 2: $20,000

$50,000Step (1):

$250,000 X 90% = $225,000(the minimum amount of insurance tomeet your Coinsurance requirementsand to avoid the penalty shown be-low)

Step (2):$180,000 : $225,000 = .80

Step (3):$50,000 X .80 = $40,000

Step (4):

$40,000 - $1,000 = $39,000.

We will pay no more than $39,000. The remaining $11,000 is not covered.

2. Mortgage Holders

a. The term "mortgage holder" includes trus-tee.

b. We will pay for covered "loss" to buildingsor structures to each mortgage holder shown in the Declarations in their order ofprecedence, as interests may appear.

c. The mortgage holder has the right to re-ceive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure.

d. If we deny your claim because of your acts or because you have failed to comply

with the terms of this Coverage Part, the mortgage holder will still have the right toreceive loss payment if the mortgage holder:

(1) Pays any premium due under thisCoverage Part at our request if youhave failed to do so;

(2) Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to doso; and

(3) Has notified us of any change in ownership, occupancy or substantialchange in risk known to the mortgage holder.

All of the terms of this Coverage Part will then apply directly to the mortgage hold-er.

e. If we pay the mortgage holder for any "loss" and deny payment to you because of your acts or because you have failed to comply with the terms of this CoveragePart:

(1) The mortgage holder's rights under the mortgage will be transferred to usto the extent of the amount we pay;and

(2) The mortgage holder's right to recov-er the full amount of the mortgage holder's claim will not be impaired.

At our option, we may pay to the mort-gage holder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us.

f. If we cancel this policy, we will give writ-ten notice to the mortgage holder at least:

(1) 10 days before the effective date ofcancellation if we cancel for your nonpayment of premium; or

(2) 30 days before the effective date ofcancellation if we cancel for any oth-er reason.

g. If we elect not to renew this policy, we will give written notice to the mortgage holder at least ten days before the expirationdate of this policy.

SECTION F. OPTIONAL COVERAGES

If shown as applicable in the Declarations, the fol-lowing Optional Coverages apply separately toeach item.



1. Agreed Value

a. The Additional Condition, Coinsurance, does not apply to Covered Property to which this Optional Coverage applies. We will pay no more for direct "loss" to that property than the proportion that the Limit of Insurance under this Coverage Part for the property bears to the Limit of Insur-ance indicated in the most current State-ment of Values that applies to this Cover-age Part.

b. If the Agreed Value Optional Coverage isdeleted from the policy, the Additional Condition, Coinsurance, is reinstated and this Optional Coverage does not apply.

c. The terms of this Optional Coverage ap-ply only to "loss" that occurs:

(1) On or after the effective date of thisOptional Coverage; and

(2) Before the policy expiration date.

d. This Agreed Value Optional Coveragedoes not apply to SECTION A. COVER-AGE, 5. Coverage Extensions, b. Busi-ness Income and Extra Expense.

2. Inflation Guard

a. The Limit of Insurance for property towhich this Optional Coverage applies will automatically increase by the annual per-centage shown in the Declarations.

b. The amount of increase will be:

(1) The Limit of Insurance that appliedon the beginning of the current "cov-erage term" or any other CoveragePart change amending the Limit of Insurance, multiplied by

(2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08),multiplied by

(3) The number of days since the begin-ning of the current "coverage term" orthe effective date of the most recentpolicy change amending the Limit ofInsurance, divided by 365. In theevent of "loss", this number of daysends at the original date of "loss".

Example:

If: The applicable Limit of Insur-ance is: $100,000

The Annual percentage increaseis: 8%

The number of days since thebeginning of the policy year (or last policy change) is: 146

The amount of increase is$100,000 X .08 X (146/365) = $3,200

3. Replacement Cost

a. Replacement Cost (without deduction for depreciation) replaces "Actual Cash Val-ue" in SECTION D. LOSS CONDITIONS, 7. Valuation of this BUILDING AND PERSONAL PROPERTY COVERAGE FORM.

b. This Optional Coverage does not apply to:

(1) Personal Property of others, except leased personal property as de-scribed in SECTION A. COVERAGE,1. Covered Property, d.(7). The val-uation of such leased personal prop-erty will be based on the amount for which you are liable under the lease,but not to exceed the replacement cost of the leased item.

(2) Personal effects;

(3) Contents of a residence;

(4) Manuscripts;

(5) Works of art, antiques or rare arti-cles, including etchings, pictures,statuary, marbles, bronzes, porce-lains and bric-a-brac;

(6) "Stock" unless the Replacement Cost including "Stock" option is shown inthe Declarations; or

(7) Property, that at the time of "loss":

(a) Is outdated, or obsolete and isstored or not being used; or

(b) Has no practical value to you.

c. You may make a claim for "loss" coveredby this insurance on an "Actual Cash Val-ue" basis instead of on a replacement cost basis. In the event you elect to have "loss" settled on an "Actual Cash Value"basis, you may still make a claim for the additional coverage this Optional Cover-age provides if you notify us of your intent to do so within 180 days after the "loss".

d. We will not pay on a replacement cost basis for any "loss":

(1) Until the lost or damaged property isactually repaired or replaced withother property of generally the same construction and used for the same



purpose as the lost or damaged property; and

(2) Unless the repairs or replacement have been completed or at least un-derway within 2 years following thedate of "loss".

e. We will not pay more for "loss" on a re-placement cost basis than the least of:

(1) The Limit of Insurance applicable tothe lost or damaged property;

(2) The cost to replace, on the same "premises", the lost or damaged property with other property:

(a) Of comparable material andquality; and

(b) Used for the same purpose; or

(3) The amount you actually spend thatis necessary to repair or replace thelost or damaged property.

f. The cost of repair or replacement doesnot include the increased cost attributableto enforcement of or compliance with any ordinance or law regulating the construc-tion, use, or repair of any building or structure except as provided in SECTION A. COVERAGE, 4. Additional Coverag-es, g. Ordinance or Law.

SECTION G. DEFINITIONS

1. "Actual cash value" means replacement costless a deduction that reflects depreciation, age, condition and obsolescence.

2. "Business Income" means the:

a. Net Income (net profit or loss before in-come taxes) that would have been earnedor incurred; and

b. Continuing normal operating expensessustained, including payroll.

3. "Computer programs" means a set of relatedelectronic instructions which direct the opera-tions and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data.

4. "Coverage term" means the following individ-ual increment, or if a multi-year policy period,increments, of time, which comprise the policy period of this Coverage Part:

a. The year commencing on the Effective Date of this Coverage Part at 12:01 A.M. standard time at your mailing addressshown in the Declarations, and if a multi-year policy period, each consecutive an-nual period thereafter, or portion thereof if

any period is for a period of less than 12months, constitute individual "coverageterms". The last "coverage term" ends at 12:00 A.M. standard time at your mailingaddress shown in the Declarations on theearlier of:

(1) The day the policy period shown inthe Declarations ends; or

(2) The day the policy to which this Cov-erage Part is attached is terminated or cancelled.

b. However, if after the issuance of thisCoverage Part, any "coverage term" isextended for an additional period of lessthan 12 months, that additional period of time will be deemed to be part of the last preceding "coverage term".

5. "Electronic data" means information, facts or "computer programs" stored as or on, createdor used on, or transmitted to or from computersoftware (including systems and applicationssoftware), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devicesor any other repositories of computer software which are used with electronically controlled equipment.

6. "Finished stock" means stock you have manu-factured, except "stock" you have manufac-tured that is held for sale on the "premises" of any retail outlet insured under this Coverage Part.

7. "Fungi" means any type or form of fungus, andincludes, but is not limited to, any form or type of mold, mushroom or mildew and any myco-toxins, spores, scents or byproducts produced or released by fungi.

8. "Loss" means accidental physical loss or acci-dental physical damage.

9. "Money" means:

a. Currency, coins and bank notes whether or not in current use; and

b. Travelers checks, registered checks and money orders held for sale to the public.

10. "Operations" means:

a. Your business activities occurring at the"premises"; and

b. The tenantability of the "premises", if cov-erage for "Business Income" including"Rental Value" or "Rental Value" applies.

11. "Period of restoration" means the period oftime that:

a. Begins at the time of direct "loss".

b. Ends on the earlier of:



(1) The date when the property at the"premises" should be repaired, rebuiltor replaced with reasonable speed and similar quality; or

(2) The date when business is resumed at a new permanent location.

c. "Period of restoration" does not includeany increased period required due to theenforcement of or compliance with any ordinance or law that:

(1) Regulates the construction, use or repair, or requires the tearing downof any property; or

(2) Requires any insured or others totest for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants".

d. The expiration date of the policy will not cut short the "period of restoration".

12. "Pollutants" means any solid, liquid, gaseousor thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, as-bestos, chemicals, petroleum, petroleum products and petroleum by-products, andwaste. Waste includes materials to be recy-cled, reconditioned or reclaimed. "Pollutants"include but are not limited to substances which are generally recognized in industry or government to be harmful or toxic to persons, property, or the environment regardless of whether injury or damage is caused directly or indirectly by the "pollutants" and whether:

a. You are regularly or otherwise engaged inactivities which taint or degrade the envi-ronment; or

b. You use, generate or produce the "pollu-tant".

13. "Premises" means the Locations and Build-ings described in the Declarations.

14. "Rental Value" means "Business Income" that consists of :

a. Net Income (Net Profit or Loss before in-come taxes) that would have been earnedor incurred as rental income from tenant occupancy of the "premises" described inthe Declarations as furnished andequipped by you, including fair rental val-ue of any portion of the "premises" which is occupied by you; and

b. Continuing normal operating expensesincurred in connection with that "premis-es", including:

(1) Payroll; and

(2) The amount of charges, which arethe legal obligation of the tenant(s) but would otherwise be your obliga-tions.

15. "Securities" means negotiable and non-negotiable instruments or contracts represent-ing either "money" or other property and in-cludes:

a. Tokens, tickets, revenue and other stamps whether or not in current use; and

b. Evidences of debt issued in connection with credit or charge cards, which are not of your own issue; but does not include"money". Lottery tickets held for sale arenot "securities" or evidences of debt.

16. "Sinkhole collapse" means the sudden settle-ment or collapse of earth supporting the Cov-ered Property into subterranean voids created by the action of water on a limestone or similar rock formation. This does not include:

a. The cost of filling sinkholes;

b. Sinking or collapse of land into man-made subterranean cavities; or

c. The value of the land.

17. "Specified causes of loss" means fire; light-ning; explosion; windstorm or hail; smoke; air-craft or vehicles; riot or civil commotion; van-dalism; leakage from fire extinguishing equip-ment; "sinkhole collapse"; volcanic action; fall-ing objects; weight of snow, ice or sleet; and water damage.

a. Falling objects does not include "loss" to:

(1) Personal property in the open; or

(2) The interior of a building or structure, or property inside a building or struc-ture, unless the roof or an outside wall of the building or structure is first damaged by a falling object.

b. Water damage means:

(1) Accidental discharge or leakage ofwater or steam as the direct result of the breaking apart or cracking of any part of a system or appliance (other than a sump system including its re-lated equipment and parts) contain-ing water or steam; and

(2) Accidental discharge or leakage ofwater or waterborne material as the direct result of the breaking apart or cracking of a water or sewer pipe thatis located off the "premises" and ispart of a municipal potable water supply system or municipal sanitary sewer system, if the breakage or cracking is caused by wear and tear.



But water damage does not include "loss"otherwise excluded under the terms of BUILDING AND BUSINESS PERSONALPROPERTY, SECTION A. COVERAGE, 3. Covered Causes of Loss, (g) Water. Therefore, for example, there is no cover-age under this Coverage Part in the situa-tion in which discharge or leakage of wa-ter results from the breaking apart or cracking of a pipe which was caused by or related to weather-induced flooding,even if wear and tear contributed to the breakage or cracking. As another exam-ple, and also in accordance with the terms of the Exclusion (g) Water, there isno coverage for "loss" caused by or relat-ed to weather-induced flooding which fol-lows or is exacerbated by pipe breakageor cracking attributable to wear and tear.

To the extent that accidental discharge or leakage of water falls within the criteriaset forth in 18.b.(1) or 18.b.(2) of this def-inition of "Specified causes of loss", such

water is not subject to the provisions ofExclusion (g) Water.

18. "Stock" means merchandise held in storage orfor sale, raw materials and in-process or fin-ished goods, including supplies used in their packing or shipping.

19. "Suspension" means:

a. The slowdown or cessation of your busi-ness activities; and

b. That a part or all of the "premises" is ren-dered untenantable.

20. "Valuable papers and records" means in-scribed, printed or written documents, manu-scripts or records, including abstracts, books,card index systems, deeds, drawings, films, maps, mortgages, or proprietary information.

But "valuable papers and records" does notmean "money" or "securities" or "electronicdata", including the materials on which the"electronic data" is recorded.


FA 4028 IL 07 17


ILLINOIS CHANGES


COMMERCIAL PROPERTY COVERAGE PART

A. Nuclear Hazard

Exclusion (1)(d) Nuclear Hazard in SEC-TION A. COVERAGE, 3. Covered Causes ofLoss, b. Exclusions of the BUILDING ANDPERSONAL PROPERTY COVERAGE FORMis deleted in its entiretyand replaced by the fol-lowing:

(d) Nuclear Hazard

Nuclear reaction or radiation, or radioac-tive contamination, however caused.However, if nuclear reaction or radiation,or radioactive contamination, results infire, we will pay for the "loss" caused bythat fire.

B. Electrical Current

Exclusion (2)(a) Electrical Current in SEC-TION A. COVERAGE, 3. Covered Causes ofLoss, b. Exclusions of the BUILDING ANDPERSONAL PROPERTY COVERAGE FORMis deleted in its entiretyand replaced by the fol-lowing:

(a) ElectricalCurrent

Artificially generated electrical or magneticor energy that damages, disturbs, disruptsor otherwise interferes with any:

1) Electrical or electronic wire, device,appliance, system or network; or

2) Device, appliance, system or networkutilizing cellular or satellite technology.

For the purpose of this exclusion, electricalor magnetic energy includes but is not lim-ited to:

1) Electrical current, including arcing;

2) Electrical charge produced or con-ducted by a magnetic field; or

3) Pulse.

However, if fire results, we will pay for "loss"caused by that fire.

C. Inventory or Appraisal

The last paragraph in SECTION A. COVERAGE,4. Additional coverages, e. Inventory or Ap-praisal is deleted in its entirety and replaced by the following:

The most we will pay for loss in any one occur-rence under this Additional Coverage is $10,000. This Coverage is in addition to the Limit of Insur-ance shown in the Declarations.


FA 4098 01 09 Page 1 of 2

CinciPlus®

COMMERCIAL PROPERTY POWER XC+® (EXPANDED

COVERAGE PLUS) ENDORSEMENT

SUMMARY OF COVERAGE LIMITS

This is a summary of the Coverages and the Limits of Insurance provided by the Commercial Property PowerXC+® (Expanded Coverage Plus) Endorsement, FA 258, in combination with the Commercial Property Cov-erage Form, FM101, which is included in this policy. No coverage is provided by this summary. Refer toendorsement FA 258 and the Commercial Property Coverage Form, FM 101, to determine the scope of yourinsurance protection.

Blanket Coverage Limit:

$ in total for all loss arising

from all Blanket Coverages arising from a

single occurrence, except as noted

Blanket Coverages:

otherwise in the form.

Page No.(FA 258):

Accounts Receivable 1

Debris Removal 8

Electronic Data Processing Property (EDP): 2

Duplicate and Backup Electronic Data $2,000 in addition to the Blanket CoverageLimit

3

Newly Acquired EDP $10,000 in addition to the Blanket CoverageLimit

3

In Transit or Away From Premises $10,000 as part of the Blanket CoverageLimit

4

Worldwide Laptop Coverage 4

Ordinance or Law (Increased ConstructionCosts and Demolition)

6

Peak Season 8

Personal Property of Others 8

Tenant Move Back Expenses 7

Valuable Papers and Records 6

Other Coverages

(not subject to Blanket Coverage Limit):

Limit of Insurance: Page No.(FA 258):

Brands and Labels $25,000 11

Business Income and Extra Expense: $100,000 1

Business Income From Dependent Properties $5,000 (sub-limit, subject to a 24 hour de-ductible)

1

Interruption of Computer Operations $25,000 (sub-limit, subject to a 24 hour de-ductible)

2

150,000


FA 4098 01 09 Page 2 of 2

Other Coverages

(not subject to Blanket Coverage Limit):

Limit of Insurance: Page No.(FA 258):

Fine Arts $25,000 5

Fire Department Service Charge $25,000 7

Fire Protection Equipment Recharge $50,000 8

Inflation Guard 4% on all Building Property referenced in theDeclarations

11

Non-Owned Building Damage: 10

Loss caused by theft, burglary or robbery Up to the Business Personal Property (BPP)Limit of Insurance

10

Loss by any other Covered Cause of Loss $25,000 or the BPP Limit of Insurance(whichever is less)

10

Ordinance or Law (other than Increased Con-struction Costs and Demolition)

Subject to the Building Limit of Insurance 6

Outdoor Property $25,000 ($1,000 for any one tree, shrub orplant)

7

Paved Surfaces $20,000 8

Personal Effects $25,000 ($1,000 for loss by theft) 7

Pollutant Clean Up and Removal $25,000 6

Signs $10,000 7

Temperature Change $15,000 9

Underground Property Subject to the Building Limit of Insurance 6

Utility Services - direct and time element $75,000 11

Overhead transmission and distribution lines $5,000 sublimit at 24 hr waiting period 11

Water Backup from Sewers, Drains or Sumps $10,000 7


Includes copyrighted material of InsuranceFA 450 05 16 Services Office, Inc., with its permission. Page 1 of 2

COMMERCIAL PROPERTY CONDITIONS

This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable LossConditions and Additional Conditions in Commercial Property Coverage Forms.

A. Concealment, Misrepresentation or Fraud

This Coverage Part is void in any case of fraud by you as it relates to this Coverage Part at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning:

1. This Coverage Part;

2. The Covered Property;

3. Your interest in the Covered Property; or

4. A claim under this Coverage Part.

B. Control of Property

Any act or neglect of any person other than you beyond your direction or control will not affect this insurance.

The breach of any condition of this Coverage Part at any one or more locations will not af-fect coverage at any location where, at the time of direct "loss", the breach of condition does not exist.

C. Insurance Under Two or More Coverages

If two or more of this policy's coverages apply to the same "loss", we will not pay more thanthe actual amount of the "loss".

D. Legal Action Against Us

No one may bring a legal action against usunder this Coverage Part unless:

1. There has been full compliance with all of the terms of this Coverage Part; and

2. The action is brought within 2 years after the date on which the direct "loss" oc-curred.

E. Liberalization

If, within 60 days prior to the beginning of this Coverage Part or during the policy period, we make any changes to any forms or endorse-ments of this Coverage Part for which there iscurrently no separate premium charge, and that change provides more coverage than thisCoverage Part, the change will be considered as included until the end of the current policy period. We will make no additional premium charge for this additional coverage during the interim.

F. No Benefit to Bailee

No person or organization, other than you, having custody of Covered Property will bene-fit from this insurance.

G. Other Insurance

1. You may have other insurance subject tothe same plan, terms, conditions and pro-visions as the insurance under this Cov-erage Part. If you do, we will pay our share of the covered "loss". Our share isthe proportion that the applicable Limit of Insurance under this Coverage Part bearsto the Limits of Insurance of all insurancecovering on the same basis.

2. If there is other insurance covering thesame "loss", other than that described in1. above, we will pay only for the amount of covered "loss" in excess of the amountdue from that other insurance, whether you can collect on it or not. However, we will not reimburse any deductible ordifference between Actual Cash Valueand Replacement Cost valuations. We will not pay more than the applicable Limit of Insurance.

H. Policy Period, Coverage Territory

Under this Coverage Part:

1. We cover "loss" commencing:

a. During the policy period shown in theDeclarations; and

b. Within the coverage territory.

2. The coverage territory:

a. The United States of America (includ-ing its territories and possessions);

b. Puerto Rico; and

c. Canada.

I. Transfer of Rights of Recovery Against Others to Us

If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organizationmust do everything necessary to secure our rights and must do nothing after direct "loss"to impair them. But you may waive your rightsagainst another party in writing:



1. Prior to a direct "loss" to your CoveredProperty or Covered Income.

2. After a direct "loss" to your Covered Property or Covered Income only if, at time of direct "loss", that party is one of the following:

a. Someone insured by this insurance;

b. A business firm:

(1) Owned or controlled by you; or

(2) That owns or controls you; or

c. Your tenant.

This will not restrict your insurance.


Includes copyrighted material of ISO CommercialFA 458 04 04 Risk Services, Inc., with its permission.


BUSINESS INCOME CHANGES - WAITING PERIOD



SCHEDULE

"Period of Restoration" Waiting Period

24 hours 48 hours 72 hours

A. Applicable Coverage Forms

This endorsement applies to the following Cov-erage Forms:

1. BUSINESS INCOME (AND EXTRA EX-PENSE) COVERAGE FORM, and

2. BUSINESS INCOME (WITHOUT EXTRAEXPENSE) COVERAGE FORM

B. SECTION F. DEFINITIONS, 7. "Period of Res-toration", is deleted in its entirety and replacedwith the following:

7. "Period of Restoration" means the periodof time that:

a. Begins:

(1) After the number of hours selectedand shown in the Schedule havepassed from the time of directphysical "loss" for Business In-come coverage; or

(2) Immediately after the time of directphysical "loss" for Extra Expensecoverage;

caused by or resulting from any CoveredCause of Loss at the "premises"; and


(1) The date when the property at the"premises" should be repaired, re-built or replaced with reasonablespeed and similar quality; or

(2) The date when business is re-sumed at a new permanent loca-tion.

"Period of restoration" does not includeany increased period required due tothe enforcement of any ordinance orlaw that:

(1) Regulates the construction, use orrepair, or requires the tearingdown of any property; or

(2) Requires any insured or others totest for, monitor, clean up, remove,contain, treat, detoxify or neutral-ize, or in any way respond to, orassess the effects of "pollutants".

The expiration date of this policy willnot cut short the "period of restoration".

X




CINCIPLUS®

COMMERCIAL PROPERTY POWER XC+®

(EXPANDED COVERAGE PLUS) ENDORSEMENT



The insurance coverage and Limits of Insurance provided by this endorsement are excess of, and ap-ply in addition to, any similar or identical coverage provided by any other endorsement attached to this Coverage Part, or by any other Coverage Part forming a part of the policy of insurance of whichthis Coverage Part forms a component.

SCHEDULE

Blanket Coverage Limit $

Applicable only to those coverages subject to the Blanket Coverage Limit, as indicated in this endorsement

A. Accounts Receivable

For the purposes of this endorsement only:

1. In BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, a. Accounts Receivable, thesecond paragraph in (3)(b) Away FromYour Premises is deleted in its entirety and replaced by the following:

This limit of insurance for Away From Your Premises coverage is not includedwithin the Blanket Coverage Limit and isseparate and in addition to the Blanket Coverage Limit.

2. In BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, a. Accounts Receivable, the last paragraph is deleted in its entirety and replaced by the following:

The most we will pay for loss in any one occurrence under this Accounts Receiv-able Coverage Extension is the Blanket Coverage Limit as provided in Section Yof this endorsement.

B. Business Income and Extra Expense

For the purposes of this endorsement only, in BUILDING AND PERSONAL PROPERTY

COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, b. Busi-ness Income and Extra Expense is modi-fied as follows:

1. Business Income From Dependent Properties

a. For Business Income from De-pendent Properties only, Para-graph b.(1) is deleted in its entirety and replaced by the following:

(1) Business Income From De-pendent Properties

We will pay for the actual lossof "Business Income" you sus-tain due to the necessary "sus-pension" of your "operations"during the "period of restora-tion". The "suspension" must be caused by direct "loss" to "dependent property" causedby or resulting from any Cov-ered Cause of Loss.

However, coverage under thisendorsement does not applywhen the only "loss" to "de-pendent property" is "loss" to"electronic data", including de-struction or corruption of "elec-tronic data". If the "dependentproperty" sustains "loss" to

150,000



"electronic data" and otherproperty, coverage under thisendorsement will not continueonce the other property is re-paired, rebuilt, or replaced.

b. Limit of Insurance for Dependent Properties

The most we will pay for loss in oneoccurrence under Business In-come From Dependent Propertiesis $5,000. This Limit of Insurance isincluded within, and is not in addi-tion to, the Limit of Insurance for the"Business Income" and Extra Ex-pense Coverage Extension.

c. Loss Determination for Depend-ent Properties

For Business Income from De-pendent Properties only, the fol-lowing is added:

Resumption of Operations


(1) "Business Income" loss, other than Extra Expense, to the ex-tent you can resume "opera-tions", in whole or in part, byusing any other available

(a) Source of materials; or

(b) Outlet for your products.

(2) Extra Expense loss to the ex-tent you can return "operations"to normal and discontinue suchExtra Expense.

d. Definitions

SECTION G. DEFINITIONS isamended to include the followingdefinitions:

(1) "Dependent property" meansproperty operated by otherswhom you depend on to:

(a) Deliver materials or ser-vices to you, or to othersfor your account (Contrib-uting Locations). But anyproperty which delivers thefollowing services is not aContributing Location withrespect to such services:

1) Water Supply ser-vices;

2) Power Supply ser-vices; or

3) Communication sup-ply services, including services relating to in-ternet access or ac-cess to any electronicnetwork;

(b) Accept your products orservices;

(c) Manufacture products fordelivery to your customersunder contract of sale; or

(d) Attract customers to yourbusiness.

(2) The "Period of restoration" Def-inition, with respect to "de-pendent property", is replacedby the following:

"Period of restoration" meansthe period of time that:

(a) Begins 24 hours after thetime of direct "loss" causedby or resulting from any Covered Cause of Loss atthe "premises" of the "de-pendent property"; and

(b) Ends on the date when theproperty at the "premises"of the "dependent proper-ty" should be repaired, re-built or replaced with rea-sonable speed and similarquality.

"Period of restoration" does notinclude any increased periodrequired due to the enforce-ment of any ordinance or law that:

(a) Regulates the construc-tion, use or repair, or re-quires the tearing down ofany property; or

(b) Requires any insured orothers to test for, monitor,clean up, remove, contain,treat, detoxify or neutral-ize, or in any way respondto, or assess the effects of "pollutants".

The expiration date of thisCoverage Part will not cut short the "period of restoration".

The most we will pay is the Business Income From Dependent Propertiessublimit of insurance. This Limit of In-surance is included within, and is not inaddition to, the Limit of Insurance for the



"Business Income" and Extra ExpenseCoverage Extension.

2. Interruption of Computer Operations

a. For Interruption of Computer Op-erations only, all references to $2,500 in b. Business Income and Extra Expense, Paragraph (7)(c)are deleted and replaced by$25,000.

b. BUILDING AND PERSONALPROPERTY COVERAGE FORM, SECTION G. DEFINITIONS isamended as follows:

With respect to a "suspension" of"operations" caused only by an in-terruption in computer operationsdue to the destruction or corruptionof "electronic data" as described in SECTION A. COVERAGE, 5. Cov-erage Extensions, d. Electronic Data, Paragraph a. of Definition 11. "Period of restoration" is deletedand replaced by the following:

a. Begins 24 hours after the time of direct "loss".

3. Business Income and Extra ExpenseRevised Limits of Insurance

The last paragraph is deleted in its en-tirety and replaced by the following:

The most we will pay for loss in any one occurrence under this "Business In-come" and Extra Expense Coverage Ex-tension is $100,000.

C. Electronic Data Processing Property

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amended by adding the following:

Electronic Data Processing Property

(1) Covered Property

You may extend the Coverage providedby this Coverage Part to apply to direct "loss" to Covered Property consisting ofyour:

(a) Data processing equipment;

(b) Air conditioning and other electrical equipment, used exclusively withyour data processing equipment;

(c) Programming documentation andinstruction manuals;

(d) "Electronic data", but only as ex-cess over what is valid and collecti-ble under SECTION A. COVER-AGE, 5. Coverage Extensions, d. Electronic Data;

(e) Media, meaning materials on which "electronic data" is recorded, such as magnetic tapes, disc packs, pa-per tapes and cards, floppy discs and compact discs used in pro-cessing units; and

(f) Property of others in your care, cus-tody or control that is similar toproperty described in (1)(a) through (e) above.

(2) Property Not Covered


(a) Accounts, records, documents andother "valuable papers and records"unless they are programming doc-umentation or instruction manuals.

However, we will cover these items once they are converted to "elec-tronic data" form.

(b) "Electronic data" or media that can-not be replaced with similar property of equal quality.

(c) Your property that you have rentedor leased to someone else and that property is not at your "premises".

(d) Any machine or apparatus that isused for research, medical, diag-nostic, surgical, dental or pathologi-cal purposes.

(e) "Production equipment".

(3) Exclusions

(a) BUILDING AND PERSONALPROPERTY COVERAGE FORM, SECTION A. COVERAGE, 3. Cov-ered Causes of Loss, b. Exclu-sions does not apply except as fol-lows:

1) Exclusion (1)(c) Governmen-tal Action;

2) Exclusion (1)(d) Nuclear Haz-ard;

3) Exclusion (1)(f) War and Mili-tary Action;

4) Exclusion (2)(b) Delay orLoss of Use;



5) Exclusion (2)(d) Miscellane-ous Causes of Loss, 1) Wear and tear;

6) Exclusion (2)(h) Dishonest orCriminal Acts;

7) Exclusion (3)(b) Acts or De-cisions; and

8) Exclusion (3)(c) Defects, Er-rors and Omissions.

(b) In addition to Paragraph (3)(a) of this Coverage Extension, we willnot pay for the following:

Hidden or latent defect, gradual de-terioration, and depreciation. How-ever, if direct "loss" by a CoveredCause of Loss results, we will pay for that resulting "loss".

(4) Duplicate and Backup "Electronic Da-ta"

We will pay for direct "loss" resultingfrom any of the Covered Causes of Loss to duplicate and backup "electronic data"that you store at a "premises" not de-scribed in the Declarations providingsuch "electronic data" is not covered byanother policy. The most we will pay for loss in any one occurrence is $2,000. This Limit of Insurance is in addition tothe other limits provided by this Cover-age Extension.

(5) Newly Purchased Electronic DataProcessing Property

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, i. Newly Purchased, Leased orConstructed Property is deleted in its entirety and replaced by the following:

(a) We will pay for direct "loss" from a Covered Cause of Loss to newly purchased or leased CoveredProperty described in Paragraph (1) of this Coverage Extension while at:

1) Locations that are newly pur-chased or leased;

2) Your newly constructed build-ings or additions at a "premis-es"; or

3) Any "premises" described inthe Declarations.

(b) Insurance under this Coverage Ex-tension for such newly acquired property, or Covered Property al-ready insured by this Coverage Ex-tension which is moved to a newly

acquired location, will end when any of the following first occurs:

1) This Coverage Part expires;

2) 90 days pass from the date youacquire your new property ormove Covered Property to anewly acquired location; or

3) You report values to us.

The most we will pay for loss in any one occurrence is $10,000. This Limit of In-surance is in addition to the other limitsprovided by this Coverage Extension.

(6) In Transit or Away From Premises

SECTION A. COVERAGE, 5. Coverage Extensions, e. Exhibitions, Fairs or Trade Shows, m. Property Off Prem-ises and p. Transportation are deleted in their entirety and replaced by the fol-lowing:

(a) You may extend the insurance pro-vided by this Coverage Extension to apply to Covered Property as de-scribed in Paragraph (1):

1) While in or on a vehicle, includ-ing loading and unloading; or

2) While at a location that is notyour "premises".

(b) This In Transit or Away FromPremises coverage does not applyper location.

The most we will pay for loss in any one occurrence is $10,000. This Limit of In-surance is not in addition to the other limits provided by this Coverage Exten-sion.

(7) Worldwide Laptop Coverage

(a) You may extend the insurance pro-vided by this Coverage Extension toapply to your laptops, notebooks and similar highly portable personal computers, including their periph-erals and accessories, while suchspecific Covered Property is:

1) In your or your employee's care, custody and control;

2) Not located at a "premises" youown or lease; and

3) Not located in the coverage ter-ritory stated in Paragraph 2. ofthe Commercial Property Con-dition H. Policy Period, Cov-erage Territory, provided that location is not under a United



States Department of Statetrade or travel restriction at thetime of "loss".

(b) This Worldwide Laptop Coveragedoes not apply per location.

(8) Electronic Data Processing Property Deductible

SECTION C. DEDUCTIBLE is amendedto include the following:

We will not pay for direct "loss" in anyone occurrence unless the amount of "loss" exceeds the Deductible shown in the Declarations. We will then pay theamount of "loss" in excess of the De-ductible, up to the Limit of Insurance provided by this Coverage Extension.

However, direct "loss" caused by or re-sulting from any of the following Causesof Loss will have the greater of the De-ductible shown in the Declarations or $1,000 as the applicable deductible:

a. "Loss" caused by faulty construction, error in design or processing, or ser-vice or work upon the data pro-cessing system;

b. "Loss" resulting in mechanicalbreakdown, short circuiting, blowout, or other electrical damage, unless caused by lightning; or

c. "Loss" caused by or resulting from interruption of power supply, power surge, blackout or brownout.

(9) Electronic Data Processing Property Valuation

SECTION D. LOSS CONDITIONS, 7. Valuation is deleted in its entirety andreplaced by the following:

7. Valuation of Electronic Data Pro-cessing Property

In the event of direct "loss", we willdetermine the value of CoveredProperty as described in Paragraph(1) of this Coverage Extension asfollows:

a. Except for "electronic data":

(1) If you repair or replace thisElectronic Data Processingproperty within a reasona-ble time following the di-rect "loss", the property willbe valued at the full cost ofrepair or replacement.

However, the most we willpay is the least of the fol-lowing:

(a) The actual cost to re-pair or restore the property with materi-als of like kind and quality;

(b) The cost of replacing that property with property of similar quality and function;

(c) The amount you actu-ally and necessarily spend to repair or re-place the property; or

(d) The Limit of Insurance applicable to the property.

(2) If you do not repair or re-place this property within areasonable time followinga direct "loss", the most wewill pay will be the least ofthe following:

(a) "Actual cash value" ofthe property;

(b) "Actual cash value" ofrepairs with material of like kind and quali-ty; or

(c) The Limit of Insurance applicable to the property.

We reserve the right to re-pair or replace the propertyor to pay for the property inmoney.

In the event of "loss", thevalue of property will bedetermined at the time ofdirect "loss".

b. For "electronic data":

We will not pay more than theactual reproduction costs ofyour "electronic data". If you donot replace or reproduce your"electronic data" following the "loss", the most we will pay isthe cost of blank media as de-scribed in Paragraph C.(1)(e) ofthis Coverage Extension.



(10) Electronic Data Processing Property Additional Definition

The following definition is added toSECTION G. DEFINITIONS of theBUILDING AND PERSONAL PROP-ERTY COVERAGE FORM:

"Production equipment" means any ma-chinery and related components, includ-ing any integrated or dedicated comput-er system, which is used, or can beused, to produce or process other tangi-ble property.

The most we will pay in total for all loss inany one occurrence for coverages describedin Paragraphs C.(1), (6), and (7) is the Blan-ket Coverage Limit as provided in Section Y.of this endorsement.

D. Fine Arts

For the purposes of this endorsement only,BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amended to include the following:

Fine Arts

(1) We will pay for direct "loss" to paintings,etchings, pictures, tapestries, art glasswindows, and other bona fide works of art of rarity, historical value, or artisticmerit. The direct "loss" must be causedby or result from a Covered Cause of Loss.

(2) SECTION D. LOSS CONDITIONS, 7. Valuation is deleted in its entirety andreplaced by the following:

We will determine the value of CoveredProperty in the event of direct "loss" atthe market value at the time of "loss".

The most we will pay for loss in any one oc-currence under this Coverage Extension is$25,000.

E. Ordinance or Law

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 4. Additional Coverages, g. Ordi-nance or Law, the last paragraph is deletedin its entirety and replaced by the following:

The most we will pay for loss in any one oc-currence under Paragraph (a) Loss of Useof Undamaged Parts of the Building is the Limit of Insurance shown in the COMMER-CIAL PROPERTY COVERAGE PART DEC-LARATIONS as applicable to the covered building or structure sustaining "loss". This

Coverage is included within, and not in addi-tion to, that applicable Limit of Insurance.

The most we will pay for all loss in any oneoccurrence under Paragraph (b) Demolition Costs and Paragraph (c) Increased Costs of Construction is the Blanket CoverageLimit as provided in Section Y of this en-dorsement per building or structure sustain-ing loss. This is an additional Limit of Insur-ance applicable to the building or structure sustaining loss.

F. Pollutant Clean Up and Removal

For the purposes of this endorsement only, inBUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 4. Additional Coverages, h. Pollutant Clean Up and Removal, the last paragraph is deleted in its entirety and replaced by the following:

The most we will pay for each "premises"under this Pollutant Clean Up and Removal Coverage Extension is $25,000. This limit in-cludes the sum of all covered expenses aris-ing out of Covered Causes of Loss during each "coverage term". This is in addition tothe Limits of Insurance shown in the COM-MERCIAL PROPERTY COVERAGE PARTDECLARATIONS.

G. Underground Property

For the purposes of this endorsement only,BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amended to include the following:

Underground Property

(1) We will pay for direct "loss" resultingfrom any of the Covered Causes of Lossto:

(a) Foundations of covered buildings,structures, machinery or boilers, iftheir foundations are below the low-est basement floor or the surface of the ground if there is no basement;and

(b) Underground pipes, flues or drainsif they are attached to CoveredProperty.

(2) SECTION A. COVERAGE, 2. Property Not Covered, g. Foundations is delet-ed in its entirety and replaced by the fol-lowing:

g. Foundations

Foundations of buildings, structures, machinery or boilers, if their founda-tions are below:



(1) The lowest basement floor; or

(2) The surface of the ground, ifthere is no basement;

except as provided in SECTION A.COVERAGE, 5. Coverage Exten-sions.

(3) SECTION A. COVERAGE, 2. Property Not Covered, n. Underground Pipes, Flues or Drains is deleted in its entirety and replaced by the following:

n. Underground Pipes, Flues orDrains

Underground pipes, flues or drains,except as provided in SECTION A.COVERAGE, 5. Coverage Exten-sions.

The most we will pay for loss in any one oc-currence is the Limit of Insurance shown in the COMMERCIAL PROPERTY COVER-AGE PART DECLARATIONS as applicableto the covered building or structure incurring direct "loss". This Coverage is included with-in, and not in addition to, that applicable Limit of Insurance.

H. Valuable Papers and Records


1. In BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, r. Valuable Papers and Rec-ords, the second paragraph in (4)(b) Away From Your Premises is deleted in its entirety and replaced by the follow-ing:

This limit of insurance for Away FromYour Premises coverage is not included within the Blanket Coverage Limit and isseparate and in addition to the Blanket Coverage Limit.

2. In BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, r. Valuable Papers and Rec-ords, the last paragraph is deleted in itsentirety and replaced by the following:

The most we will pay for loss in any one occurrence under this Valuable Papersand Records Coverage Extension is theBlanket Coverage Limit as provided inSection Y of this endorsement.

I. Water Backup Discharged from Sewers, Drains, Septic or Sump Pump Systems


(1) BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 3. Covered Causes of Loss, b. Exclusions, (1)(g) Water, Paragraph 3) is deleted in its entirety and replaced by the following:

3) Except as provided in SECTION A. COVERAGE, 5. Coverage Exten-sions, Water Backup Dischargedfrom Sewers, Drains, Septic orSump Pump Systems, water thathas entered and then backs up through and is discharged from a sewer, drain, septic system, sump pump system or related equipment;or

(2) BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 3. Covered Causes of Loss, b. Exclusions, (1)(g) Water, Paragraph 5) is deleted in its entirety and replaced by the following:

5) Except as provided in SECTION A. COVERAGE, 5. Coverage Exten-sions, Water Backup Dischargedfrom Sewers, Drains, Septic orSump Pump Systems, waterborne material carried or otherwise moved by any of the water referred to in Paragraph 1), 3) or 4), or materialcarried or otherwise moved by mudslide or mudflow as describedin Paragraph (g)2).

(3) BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 5. Coverage Exten-sions, is amended to include the follow-ing:

Water Backup Discharged From Sew-ers, Drains, Septic or Sump Pump Systems

We will pay for "loss" caused by or re-sulting from water or waterborne materi-al that has entered and then backs up through and is discharged from a sewer, drain (including roof drains and related fixtures), septic system, sump pump sys-tem or related equipment.

(4) SECTION C. DEDUCTIBLE is amendedby adding the following:

Water Backup Deductible

We will not pay for "loss" in any one oc-currence caused by or resulting from water or waterborne material whichbacks up through and is discharged from a sewer, drain, septic system, sump pump system or related equipment, until the amount of "loss" exceeds the De-



ductible shown in the Declarations, or $1,000, whichever is greater. We will then pay the amount of "loss" in excessof that deductible, up to the applicable limit indicated in Paragraph (5) of thisCoverage Extension.

(5) The most we will pay for loss in any oneoccurrence under this Water Backup Discharged from Sewers, Drains, Septicor Sump Pump Systems Coverage Ex-tension is $10,000, including any "Busi-ness Income", "Rental Value" and ExtraExpense loss.

J. Fire Department Service Charge

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 4. Additional Coverages, c. Fire De-partment Service Charge is deleted in itsentirety and replaced by the following:

When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $25,000 in any one occurrence for Fire Department Ser-vice Charge for your liability, which is deter-mined prior to direct "loss", for fire depart-ment service charges:

(1) Assumed by contract or agreement; or

(2) Required by local ordinance.

This Coverage is in addition to the Limits of Insurance shown in the COMMERCIALPROPERTY COVERAGE PART DECLA-RATIONS and applies per location. Such lim-it is the most we will pay regardless of the number of responding fire departments or fire units, and regardless of the number or typeof services performed.

K. Signs

For the purposes of this endorsement only, inBUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, n. Signs, the second paragraph is deleted in its entire-ty and replaced by the following:

The most we will pay for loss in any one oc-currence under this Sign Coverage Extension is $10,000.

L. Outdoor Property

For the purposes of this endorsement only, in BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, k. Outdoor Property, the last paragraph is deleted in itsentirety and replaced by the following:

The most we will pay for loss in any one oc-currence under this Outdoor Property Cover-age Extension is $25,000, but not more than $1,000 for any one tree, shrub, or plant.

M. Personal Effects

For the purposes of this endorsement only, inBUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, l. Personal Effects, the last two paragraphs are deleted in their entirety and replaced by the following:

If theft is included as a Covered Cause of Loss under this Coverage Part, then thisPersonal Effects Coverage Extension has a$1,000 per occurrence limitation for direct "loss" by theft.

The most we will pay for loss in any one oc-currence under this Personal Effects Cover-age Extension is $25,000.

N. Tenant Move Back Expenses

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amendedto include the following:

Tenant Move Back Expenses

(1) We will reimburse you for expenses youpay for Covered Move Back Costs of your tenants who temporarily vacate aportion of the building at a "premises". The vacancy must have occurred while the portion of the building rented by your tenant could not be occupied due to di-rect "loss" to your Covered Property caused by or resulting from a CoveredCause of Loss during the "coverageterm". The move back must be complet-ed within 60 calendar days after the por-tion of the building rented by your tenant has been repaired or rebuilt and is ready for occupancy.

(2) Covered Move Back Costs means only documented, reasonable and necessary costs of:

(a) Packing, insuring and transporting business personal property;

(b) Re-establishing electric utility and communication services, less re-funds from discontinued services;

(c) Assembling and setting up fixturesand equipment; or

(d) Unpacking and re-shelving stockand supplies.



(3) If your tenants have valid and collectible insurance for Covered Move BackCosts, we will pay only for the amount of Covered Move Back Costs in excess of the amount payable from such other in-surance.

The most we will pay for loss in any one oc-currence under this Tenant Move Back Ex-penses Coverage Extension is the BlanketCoverage Limit as provided in Section Y of this endorsement.

O. Peak Season

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amended to include the following:

Peak Season

1. In the event that the limit of insurance stated in the Declarations for BusinessPersonal Property is insufficient to fully insure a covered "loss" due to a PeakSeason Demand for your inventory, wewill pay up to the Blanket Coverage Limit as provided in Section Y of this en-dorsement.

2. Peak Season Demand means a tempo-rary (90 consecutive days or less) in-crease in your inventory to meet a sea-sonal demand as verified by:

a. Your previous inventory records for that historical period of time; and

b. Custom and practice in your indus-try.

P. Personal Property of Others


Personal Property of Others

In the event that the limit of insurance stated in the COMMERCIAL PROPERTY COVER-AGE PART DECLARATIONS for BusinessPersonal Property is insufficient to fully in-sure a covered "loss" to both your CoveredPersonal Property and property described in Paragraph (8) of SECTION A. COVERAGE,1. Covered Property, d. Business Person-al Property, we will pay up to the BlanketCoverage Limit in any one occurrence asprovided in Section Y of this endorsement forsuch property.

Q. Debris Removal


In the event that the limits of insurance stated in BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 4. Additional Coverages, b. Debris Removal are insufficient to fully cover a "loss" insured thereunder, we will pay up to the Blanket Coverage Limit in any one occur-rence as provided in Section Y of this en-dorsement.

R. Fire Protection Equipment Recharge

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 4. Additional Coverages, d. Fire Pro-tection Equipment Recharge, the last par-agraph is deleted and replaced by the follow-ing:

The most we will pay for loss in any one oc-currence under this Fire Protection Equip-ment Recharge Coverage Extension is$50,000. This Coverage is in addition to the Limits of Insurance shown in the COMMER-CIAL PROPERTY COVERAGE PART DEC-LARATIONS.

S. Paved Surfaces


1. BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 2. Property Not Cov-ered, i. Paved Surfaces is deleted in itsentirety and replaced by the following:

Except as provided in 4. Additional Coverages, Paved Surfaces, bridges, roadways, walks, patios or other paved surfaces.

2. BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 4. Additional Cover-ages is amended to include the follow-ing:

Paved Surfaces

We will pay for direct "loss" resultingfrom any of the Covered Causes of Loss to bridges, roadways, walks, patios or other paved surfaces.

The most we will pay for loss in any oneoccurrence under this Paved SurfacesCoverage Extension is $25,000.



T. Temperature Change


Temperature Change

(1) Coverage

(a) BUILDING AND PERSONALPROPERTY COVERAGE FORM, SECTION A. COVERAGE, 1. Cov-ered Property is deleted in its en-tirety and replaced by the following:

Covered Property means "perisha-ble stock" located in a building at a "premises".

(b) BUILDING AND PERSONALPROPERTY COVERAGE FORM, SECTION A. COVERAGE, 2.Property Not Covered is deleted in its entirety and replaced by the fol-lowing:

Covered Property does not include:

"Perishable Stock" Not in Build-ings

"Perishable stock" located on build-ings, in or on vehicles, or otherwisein the open.

(2) Covered Causes of Loss

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONA. COVERAGE, 3. Covered Causes of Loss, a. Covered Causes of Loss isdeleted in its entirety and replaced by the following:

a. Covered Causes of Loss

Covered Causes of Loss means di-rect "loss" from "temperature change" to Covered Property unless"loss" is excluded or limited in thisCoverage Part.

(3) Excluded Causes of Loss

(a) BUILDING AND PERSONALPROPERTY COVERAGE FORM SECTION A. COVERAGE, 3. Cov-ered Causes of Loss, b. Exclu-sions does not apply to this Cover-age Extension, except as follows:

(1) Exclusion (1)(b) Earth Move-ment;

(2) Exclusion (1)(c) Governmen-tal Action;

(3) Exclusion (1)(d) Nuclear Haz-ard;

(4) Exclusion (1)(f) War and Mili-tary Action;

(5) Exclusion (1)(g) Water; or

(6) Exclusion (1)(h) "Fungi", Wet Rot, Dry Rot, and Bacteria.

(b) In addition to Paragraph (3)(a) of this Coverage Extension, we will notpay for direct "loss" caused by orresulting from any of the following:

1) The disconnecting of any heat-ing, refrigerating, cooling or humidity control system from the source of its power;

2) The deactivation of electricalpower caused by the manipula-tion of any switch or other de-vice (on "premises") used tocontrol the flow of electricalpower or current;

3) The inability of an ElectricalUtility Company or other powersource to provide sufficientpower due to:

a) Lack of fuel; or

b) Governmental order;

4) The inability of a power sourceat the "premises" to providesufficient power due to the lackof generating capacity to meet demand; or

5) Breaking of any glass that is apermanent part of any heating,refrigeration, cooling or humidi-ty control unit.

(4) Limits of Insurance

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONB. LIMITS OF INSURANCE is deleted in its entirety and replaced by the following:


a. The most we will pay for all direct"loss" in any one occurrence underthis Temperature Change CoverageExtension is $15,000, including any "Business Income", "Rental Value", and Extra Expense loss.

b. The Limit of Insurance for Tempera-ture Change is not an additional amount of insurance and will not in-crease the Limit of Insurance shown



in the Declarations for BusinessPersonal Property or "stock".

(5) Duties in the Event of Loss

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIOND. LOSS CONDITIONS, 3. Duties inthe Event of Loss or Damage, a.(2) isdeleted in its entirety and replaced by the following:

(2) All claims under this Temperature Change Coverage Extension should be reported immediately upon oc-currence. Include a description ofthe damaged "perishable stock". Alldamaged "perishable stock" must be available for inspection and veri-fication.

(6) Coinsurance

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONE. ADDITIONAL CONDITIONS, 1. Co-insurance does not apply to the cover-age provided by this endorsement.

(7) Definitions

BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTIONG. DEFINITIONS is amended to includethe following definitions:

"Perishable stock" means personal property:

a. Preserved and maintained under controlled conditions; and

b. Susceptible to "loss" if the con-trolled conditions change.

"Temperature change" means:

a. The fluctuation or total interruptionof electrical power, either on or off "premises", resulting from condi-tions beyond your control.

b. Mechanical breakdown or mechani-cal failure of any refrigerating or cooling apparatus or equipment (on "premises") including the blowing of any fuse, fuses, or circuit breakers,only while such equipment is at the"premises".

c. Contamination by refrigerant.

d. Damage due to the freezing of "per-ishable stock" that is not meant to be frozen resulting from the faultyoperation of any stationary heatingplant, when such "perishable stock"is contained within a building at the "premises".

U. Nonowned Building Damage

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, j.Nonowned Building Damage is deleted in its entirety and replaced by the following:

If you are a tenant, you may extend the in-surance provided by this Coverage Part forBusiness Personal Property to direct "loss"that occurs to the building at a "premises"you occupy but do not own.

This Coverage Extension applies only if your lease makes you legally responsible for that part of the building sustaining "loss".


(1) Glass, including lettering and ornamen-tation, and also necessary:

(a) Repair or replacement of encasing frames or alarm tapes; and

(b) Expenses incurred to board upopenings or remove or replace ob-struction.

(2) Building materials and equipment re-moved from the "premises".

The most we will pay for loss in any one oc-currence under this Nonowned BuildingDamage Coverage Extension is:

(1) The actual "loss" sustained up to theapplicable Limit of Insurance for Busi-ness Personal Property for direct "loss"caused by theft, burglary or robbery, or the attempt of the foregoing; or

(2) The applicable Limit of Insurance for Business Personal Property or $25,000,whichever is less, for "loss" caused byany other Covered Cause of Loss, not referenced in Paragraph U.(1) above.

V. Inflation Guard

For the purposes of this endorsement only,the COMMERCIAL PROPERTY COVER-AGE PART DECLARATIONS is amended toshow 4% for Inflation Guard in the OPTION-AL COVERAGES - Inflation Guard columnfor each scheduled Building Property. If an Inflation Guard percentage is already indicat-ed on the COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS for that Building property, this percentage is ex-cess of that Inflation Guard percentage forthat Building property.

W. Brands and Labels

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY



COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions is amended to include the following:

Brands and Labels

If branded or labeled merchandise that isCovered Property is damaged by a Covered Cause of Loss, we may take all or any part of the property at an agreed or appraised value. If so, you may:

(1) Stamp "salvage" on the merchandise or its containers, if the stamp will not physi-cally damage the merchandise; or

(2) Remove the brands or labels, if doing sowill not physically damage the merchan-dise. You must re-label the merchandiseor its containers to comply with the law.

The most we will pay for loss in any one occurrence under this Brands and La-bels Coverage Extension is $25,000.

X. Utility Services

For the purposes of this endorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION A. COVER-AGE, 5. Coverage Extensions, q. Utility Services is deleted in its entirety and re-placed by the following:

q. Utility Services

We will pay for:

(1) Direct "loss" to Covered Property at your "premises" except for direct "loss" resulting from the partial orcomplete failure of Wastewater Removal Services; and

(2) Loss of "Business Income", "Rental Value" and Extra Expenses as pro-vided in SECTION A. COVERAGE, 5. Coverage Extensions, b. Busi-ness Income and Extra Expense;

caused by or resulting from the partial orcomplete failure of utility services to the"premises".

The partial or complete failure of theutility services listed below must becaused by direct "loss" caused by aCovered Cause of Loss to the followingproperty:

(1) Power Supply Property, meaning the following types of property sup-plying electricity, steam or naturalgas to the "premises":

(a) Utility generating plants;

(b) Switching stations;

(c) Substations;

(d) Transformers; and

(e) Transmission, distribution, ser-vice, or similar lines, includingall such overhead lines of anytype, except as modified inParagraph X.(6) below;

(2) Water Supply Property, meaning the following types of property sup-plying water to the "premises":

(a) Pumping stations; and

(b) Water mains.

(3) Wastewater Removal Property,meaning a utility system for remov-ing wastewater and sewage from the "premises", other than a system designed primarily for draining storm water. The utility property in-cludes sewer mains, pumping sta-tions and similar equipment for moving the effluent to a holding,treatment or disposal facility, andincludes such facilities. Coverageunder this Coverage Extensiondoes not apply to interruption in service caused by or resulting from a discharge of water or sewage dueto heavy rainfall or flooding.

(4) Communication Supply Property,meaning property supplying com-munication services, including ser-vice relating to Internet access or access to any electronic, cellular, orsatellite network; telephone, radio,microwave, or television services tothe "premises", such as:

(a) Communication transmission,distribution, service, or similar lines, including fiber optic lines,including all such overheadlines of any type, except asmodified in Paragraph X.(6) be-low;

(b) Coaxial cables; and

(c) Microwave radio relays, exclud-ing satellites.

(5) This Coverage Extension does not apply to direct "loss" to "electronicdata", including destruction or cor-ruption of "electronic data".

(6) When "loss" from the partial or complete interruption of utility ser-vices to a "premises" is caused solely by "loss" to overhead lines ofany type:



(a) The most we will pay in any one occurrence for direct "loss"and loss of "Business Income", "Rental Value" and Extra Ex-pense is $5,000. This Limit ofInsurance is part of, not in addi-tion to, the Limit of Insuranceprovided by this Utility ServicesCoverage Extension; and

(b) For loss of "Business Income", "Rental Value" and Extra Ex-pense, SECTION G. DEFINI-TIONS, 11. Period of restora-tion, Paragraph a. is deleted inits entirety and replaced by thefollowing:

a. Begins:

(1) 24 hours after the time of direct "loss" for "Business Income"and "Rental Value"Coverage; or

(2) Immediately after the time of direct "loss" for Extra Expense Cover-age.

The most we will pay for all direct "loss" andloss of "Business Income", "Rental Value"and Extra Expense in any one occurrenceunder this Utility Services Coverage Exten-sion is $75,000.

Y. Blanket Coverage Limit

We will pay up to the Limit of Insurance stat-ed in the Schedule of this endorsement in to-tal in any one occurrence for the sum of all "loss" insured under coverages provided in this endorsement which are subject to the Blanket Coverage Limit. You may apportion this Limit among these coverages as youchoose.


FA 244 05 11 Page 1 of 3


EQUIPMENT BREAKDOWN COVERAGE(Excluding Production Machinery)


COMMERCIAL PROPERTY COVERAGE FORM

A. COVERAGE

1. BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTION A. COVERAGE is amended by adding the following:

We will pay for direct damage to Covered Property caused by or resulting from an "accident" at the "premises".

2. BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTION A.COVERAGE, 3. Covered Causes ofLoss, b. Exclusions is amended by:

a. Adding the following to (1)(e) Utility Services, (1)(g) Water 1), (2)(a) Electrical Current, (2)(d) Miscella-neous Causes of Loss, (2)(j) Expo-sure to Weather, (3)(a) WeatherConditions, (3)(b) Acts or Deci-sions, and (3)(c) Defects, Errors,and Omissions:

However, this exclusion does not ap-ply if these causes of loss are caused by, or result from, an "accident" toCovered Property at the "premises".

b. Deleting in its entirety (2)(e) Explo-sion of Steam Apparatus.

3. BUILDING AND PERSONAL PROP-ERTY COVERAGE FORM, SECTION A. COVERAGE, 3. Covered Causes ofLoss, c. Limitations is amended:

a. By deleting in its entirety:

(1) (1)(a) Steam Apparatus; and

(2) (1)(b) Hot Water Boilers,

b. And by adding the following:

The following limitations apply only to "loss" covered by this endorsement.The sublimits provided in Paragraphs(1), (2) and (3) below are included within, and are not in addition to, the Limit of Insurance shown in the Dec-larations as applicable to the Covered Property. These limits, or the appli-cable Limit of Insurance shown in the Declarations as applicable to the Covered Property, whichever is less,

apply. These limits apply to direct damage only.

(1) Ammonia Contamination Limi-tation

If Covered Property is contami-nated by ammonia as a result ofan "accident" to Covered Prop-erty at the "premises", the most we will pay for this kind of dam-age, including salvage expense, is $50,000 per location.

(2) Data, Media and Software Res-toration

If "electronic data" is destroyed or corrupted as a result of an"accident" to covered equipment, the most we will pay for the ex-penses incurred by you for therestoration of that "electronicdata" is $50,000 for all loss sus-tained in the "coverage term", regardless of the number of "ac-cidents" or the number of "prem-ises" involved.

(3) "Hazardous Substance" Limi-tation

The following applies despite theoperation of the Ordinance or Law Exclusion.

If Covered Property is damaged, contaminated or polluted by a"hazardous substance" as a re-sult of an "accident" to Covered Property at the "premises", themost we will pay for any addi-tional expenses incurred by youfor clean up, repair, replacement or disposal of that property is$50,000. As used here, addi-tional expenses mean expensesincurred beyond those for whichwe would be liable if no "hazard-ous substance" had been in-volved.

B. Additional Coverages

For the purposes of the coverages in this en-dorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION


FA 244 05 11 Page 2 of 3

A. COVERAGE, 4. Additional Coverages is amended as follows:

1. The first paragraph is deleted in its en-tirety and replaced with the following:

All other terms and conditions of this Cov-erage Part, including Limits of Insurance and deductibles, apply to these Additional Coverages.

2. The following is added:

a. Drying Out

If electrical equipment included in Covered Property requires "dryingout" as a result of a "flood", the rea-sonable expense incurred for the "drying out" will be covered. This Ad-ditional Coverage is included withinthe Limit of Insurance shown in the Declarations as applicable to the Covered Property.

b. Expediting Expenses

With respect to "loss" covered by this endorsement, and with respect to your damaged Covered Property, we will pay the reasonable extra cost to:

(1) Make temporary repairs;

(2) Expedite permanent repairs; and

(3) Expedite permanent replace-ment.

c. Non-Owned Utility Service Equip-ment

We will pay for indirect loss resultingfrom an "accident" to non-owned util-ity equipment described in E. Defini-tions, 1.a.(6) but we will not pay for any expense to repair or replace di-rect damage to non-owned utility equipment that:

(1) You do not own, lease or rent, or

(2) That is not in your care custody and control.

This Additional Coverage is includedwithin the Limit of Insurance shown in the Declarations as applicable to the Covered Property.

C. Deductible

For the purposes of the coverages in this en-dorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION C. DEDUCTIBLE is amended by adding the following:

The deductible applicable to "loss" covered by this endorsement is $500, or the deductible in-dicated in the Declarations as being applicable

to the lost or damaged Covered Property, whichever is greater.

D. Conditions

For the purposes of the coverages in this en-dorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION E. ADDITIONAL CONDITIONS is amended byadding the following:

1. Suspension

Whenever any covered equipment isfound to be in, or exposed to, a danger-ous condition, any of our representativesmay immediately suspend the insurance against "loss" from an "accident" to that covered equipment. This can be done by delivering or mailing a written notice of suspension to:

a. Your last known address; or

b. The address where the covered equipment is located.

Once suspended in this way, your insur-ance can be reinstated only by written no-tice from us.

If we suspend your insurance, you will get a pro rata refund of premium for that cov-ered equipment. However, the suspension will be effective even if we have not yet made or offered a refund.

2. Inspection

If any Covered Property requires inspec-tion to comply with state or municipal boiler and pressure vessel regulations, we agree to perform such inspection on your behalf.

E. Definitions

For the purposes of the coverages in this en-dorsement only, BUILDING AND PERSONAL PROPERTY COVERAGE FORM, SECTION G. DEFINITIONS is amended by adding thefollowing:

1. a."Accident" means a sudden and acci-dental breakdown of the following covered equipment:

(1) Any boiler;

(2) Any fired or unfired pressure vessel subject to vacuum or internal pres-sure other than the static pressure ofits contents;

(3) Any piping and its accessory equip-ment;

(4) Any refrigeration or air conditioning system; or


FA 244 05 11 Page 3 of 3

(5) Any mechanical or electrical machine or apparatus used for the generation, transmission or utilization of me-chanical or electrical power.

(6) Equipment of a type described in definition a.(1) through (5) above which you do not own, lease or rentand is not in your care, custody or control that is on or within one mile ofa covered "location", and is supplyingyou with electricity, gas, water, steam, heat, refrigeration, air condi-tioning or communication services.

At the time the breakdown occurs, it must become apparent by physical damage that requires repair or replacement of the covered equipment or part thereof.

b. None of the following is an "accident":

(1) Depletion, deterioration, corrosion or erosion, wear and tear;

(2) Leakage at any valve, fitting, shaftseal, gland packing, joint or connec-tion;

(3) The functioning of any safety or pro-tective device; or

(4) The breakdown of any structure or foundation.

c. None of the following are covered equip-ment:

(1) Any sewer piping, underground gaspiping, or piping forming a part of a sprinkler system;

(2) Water piping other than boiler feed water piping, boiler condensate returnpiping or water piping forming a part of a refrigeration or air conditioning system;

(3) Insulating or refractory material;

(4) Vehicle, elevator, escalator, con-veyor, hoist or crane;

(5) Felt, wire, screen, die, extrusion plate, swing hammer, grinding disc, cutting blade, non-electrical cable,chain, belt, rope, clutch plate, brake pad, nonmetallic part, or any part or tool subject to periodic replacement; or

(6) "Production Machinery".

d. If a strike, riot, civil commotion, act of sabotage or vandalism results in an "acci-dent", this insurance applies. However, the War and Military Action Exclusion and the conditions of this Coverage Part still apply.

2. "Drying out" means restoration of electrical equipment to service following a "flood" by re-moval of excess moisture from that equipment including:

a. Application of heat or controlled electrical current, circulation of air, or use of dehu-midification equipment, after rinsing the electrical equipment with clean fresh wa-ter if necessary to flush away "flood" de-bris;

b. "Drying out" can be done in place or equipment can be disconnected and re-moved to a repair facility for drying if nec-essary.

c. "Drying out" does not include or apply to:

(1) Replacement or repair of any electri-cal equipment or parts thereof; or

(2) Any expense related to deconstruc-tion, demolition, or reconstruction ofany building component, structure or part thereof to gain access to electri-cal equipment.

3. "Flood" means a general and temporary con-dition of partial or complete inundation of nor-mally dry land areas due to:

a. The overflow of inland or tidal waters;

b. The unusual or rapid accumulation or runoff of surface waters from any source;or

c. Mudslides or mudflows, which are caused by flooding as defined above in Paragraph 3.b. For the purpose of this Covered Cause of Loss, a mudslide or mudflow in-volves a river of liquid and flowing mud on the surface of normally dry land areas aswhen earth is carried by a current of water and deposited along the path of the cur-rent.

All flooding in a continuous or protracted event will constitute a single "flood".

4. "Hazardous Substance" means a substancedeclared to be hazardous to health by a gov-ernmental agency.

5. "Production Machinery" means:

a. Production or process machine or appara-tus that processes, forms, cuts, shapesgrinds or conveys raw material, material in process or finished products, and the computers and their peripherals that con-trol or operate such a machine or appara-tus.

b. Machine or apparatus used for research, medical, diagnostic, surgical, dental or pathological purposes, and computersand their peripherals that control or oper-ate such a machine or apparatus.


Includes copyrighted material of InsuranceFA 213 IL 05 16 Services Office, Inc., with its permission. Page 1 of 9

BUSINESS INCOME (AND EXTRA EXPENSE)COVERAGE FORM - ILLINOIS

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, dutiesand what is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION F. DEFI-NITIONS.

SECTION A. COVERAGE

Coverage is provided as described and limited be-low for one or more of the following options forwhich a Limit of Insurance is shown in the Declara-tions:

a. "Business Income" including "Rental Value".

b. "Business Income" other than "Rental Value".

c. "Rental Value".

If option a. above is selected, the term "BusinessIncome" will include "Rental Value". If option c.above is selected, the term "Business Income" willmean "Rental Value" only.

If Limits of Insurance are shown under more thanone of the above options, the provisions of thisCoverage Part apply separately to each.

1. Business Income

a. We will pay for the actual loss of "Busi-ness Income" you sustain due to the nec-essary "suspension" of your "operations"during the "period of restoration". The "suspension" must be caused by direct"loss" to property at "premises" which aredescribed in the Declarations and for which a "Business Income" Limit of Insur-ance is shown in the Declarations. The "loss" must be caused by or result from a Covered Cause of Loss. With respect to "loss" to personal property in the open (orpersonal property in a vehicle or portable storage unit), the "premises" include the area within 1,000 feet of the building or 1,000 feet of the "premises", whichever distance is greater.

b. With respect to the requirements set forth in the preceding paragraph, if you are atenant and occupy only part of the site at which the "premises" are located, for thepurposes of this Coverage Part only, your "premises" is the portion of the buildingwhich you rent, lease or occupy, includ-ing:

(1) Any area within the building or on thesite at which the "premises" are lo-

cated if that area services or is used to gain access to the described"premises".

(2) Your personal property in the open (or in a vehicle or portable storageunit) within 1,000 feet of the building or 1,000 feet of the "premises",whichever distance is greater.

2. Extra Expense

a. Extra Expense coverage is provided at the "premises" described in the Declara-tions only if the Declarations show that "Business Income" coverage applies atthat "premises".

b. Extra Expense means necessary ex-penses you sustain (as described in Par-agraphs 2.c., d. and e.) during the "period of restoration" that you would not have sustained if there had been no direct "loss" to property caused by or resultingfrom a Covered Cause of Loss.

c. If these expenses reduce the otherwise payable "Business Income" loss, we willpay expenses (other than the expense torepair or replace property as described inParagraph 2.d.) to:

(1) Avoid or minimize the "suspension"of business and to continue "opera-tions" either:

(a) At the "premises"; or

(b) At replacement "premises" or temporary locations, includingrelocation expenses and costs toequip and operate the replace-ment location or temporary loca-tion; or

(2) Minimize the "suspension" of busi-ness if you cannot continue "opera-tions".

d. We will also pay expenses to:

(1) Repair or replace property; or



(2) Research, replace or restore the lostinformation on damaged "valuablepapers and records";

but only to the extent this payment reduc-es the otherwise payable "Business In-come" loss. If any property obtained for temporary use during the "period of resto-ration" remains after the resumption ofnormal "operations", the amount we will pay under this Coverage Form will be re-duced by the salvage value of that prop-erty.

e. Extra Expense as described in Para-graphs 2.a. thru 2.d. does not apply to"loss" to Covered Property as describedin the BUILDING AND PERSONALPROPERTY COVERAGE FORM.

3. Covered Causes of Loss

See BUILDING AND PERSONAL PROPER-TY COVERAGE FORM, SECTION A. COV-ERAGE, 3. Covered Causes of Loss.

4. Limitation for Electronic Data

a. Coverage for "Business Income" does not apply when a "suspension" of "opera-tions" is caused by destruction or corrup-tion of "electronic data", or any "loss" to"electronic data", except as provided un-der SECTION A. COVERAGE, 5. Addi-tional Coverages, d. Interruption of Computer Operations.

b. Coverage for Extra Expense does not ap-ply when action is taken to avoid or mini-mize a "suspension" of "operations"caused by destruction or corruption of "electronic data", or any "loss" to "elec-tronic data", except as provided underSECTION A. COVERAGE, 5. Additional Coverages, d. Interruption of Comput-er Operations.

c. This Limitation does not apply when "loss" to "electronic data" involves only"electronic data" which is integrated in and operates or controls a building's ele-vator, lighting, heating, ventilation, air conditioning or security system.

5. Additional Coverages

The Additional Coverages in Paragraphs 5.a.through 5.e. are included within and not addi-tional "Business Income" and Extra Expense Limits of Insurance.

a. Alterations and New Buildings

We will pay for the actual loss of "Busi-ness Income" you sustain and necessaryExtra Expense you sustain due to direct "loss" at the "premises" caused by or re-

sulting from any Covered Cause of Loss to:

(1) New buildings or structures, whethercomplete or under construction;

(2) Alterations or additions to existingbuildings or structures; and

(3) Machinery, equipment, supplies or building materials located on or with-in 1,000 feet of the "premises" and:

(a) Used in the construction, altera-tions or additions; or

(b) Incidental to the occupancy ofnew buildings.

If such direct "loss" delays the start of"operations", the "period of restoration"for "Business Income" coverage will beginon the date "operations" would have be-gun if the direct "loss" had not occurred.

b. Civil Authority

When a Covered Cause of Loss causesdirect damage to property other than Covered Property at the "premises", wewill pay for the actual loss of "BusinessIncome" you sustain and necessary ExtraExpense you sustain caused by action ofcivil authority that prohibits access to the "premises", provided that both of the fol-lowing apply:

(1) Access to the area immediately sur-rounding the damaged property isprohibited by civil authority as a re-sult of the damage; and

(2) The action of civil authority is taken in response to dangerous physical con-ditions resulting from the damage or continuation of the Covered Cause ofLoss that caused the damage, or theaction is taken to enable a civil au-thority to have unimpeded access to the damaged property.

Civil Authority coverage for "Business In-come" will begin immediately after thetime of the first action of civil authority that prohibits access to the "premises" and will apply for a period of up to 30 consecutive days from the date on which such cover-age began.

Civil Authority coverage for Extra Ex-pense will begin immediately after thetime of the first action of civil authority that prohibits access to the "premises" and will end 30 consecutive days after the date ofthat action; or when your Civil Authority coverage for "Business income" coverageends, whichever is later.



c. Extended Business Income

(1) "Business Income" Other Than"Rental Value"

If the necessary "suspension" of your "operations" produces a "BusinessIncome" loss payable under thisCoverage Part, we will pay for the ac-tual loss of "Business Income" yousustain during the period that:

(a) Begins on the date property (ex-cept "finished stock") is actuallyrepaired, rebuilt or replaced and"operations" are resumed; and

(b) Ends on the earlier of:

(i) The date you could restoreyour "operations", with rea-sonable speed, to the levelwhich would generate the"Business Income" amount that would have existed if no direct "loss" had occurred; or

(ii) 60 consecutive days afterthe date determined inc.(1)(a) above.

However, Extended Business Incomedoes not apply to loss of "BusinessIncome" sustained as a result of un-favorable business conditions causedby the impact of the Covered Causeof Loss in the area where the "prem-ises" are located.

Loss of "Business Income" must becaused by direct "loss" at the "prem-ises" caused by or resulting from any Covered Cause of Loss.

(2) "Rental Value"

If the necessary "suspension" of your "operations" produces a "Rental Val-ue" loss payable under this CoveragePart, we will pay for the actual loss of"Rental Value" you sustain during theperiod that:

(a) Begins on the date property isactually repaired, rebuilt or re-placed and tenantability is re-stored; and

(b) Ends on the earlier of:

(i) The date you could restoretenant occupancy, with rea-sonable speed, to the levelwhich would generate the"Rental Value" that wouldhave existed if no direct "loss" had occurred; or

(ii) 60 consecutive days afterthe date determined inc.(2)(a) above.

However, Extended Business Income does not apply to loss of "Rental Value"sustained as a result of unfavorable busi-ness conditions caused by the impact of the Covered Cause of Loss in the areawhere the "premises" are located.

Loss of "Rental Value" must be caused by direct "loss" at the described "premises"caused by or resulting from any CoveredCause of Loss.

d. Interruption of Computer Operations

(1) Subject to all provisions of this Addi-tional Coverage - Interruption of Computer Operations, you may ex-tend the insurance that applies to"Business Income" and Extra Ex-pense to apply to a "suspension" of"operations" caused by an interrup-tion in computer operations due todestruction or corruption of "electron-ic data" due to a Covered Cause of Loss. This Additional Coverage - In-terruption of Computer Operationsdoes not apply when loss to "elec-tronic data" only involves loss to"electronic data" which is integrated in and operates or controls a build-ing's elevator, lighting, heating, venti-lation, air conditioning or security system.

(2) The Covered Causes of Loss include a virus, harmful code or similar in-struction introduced into or enactedon a computer system (including "electronic data") or a network to which it is connected, designed todamage or destroy any part of the system or disrupt its normal opera-tion. But there is no coverage for an interruption related to manipulation ofa computer system (including "elec-tronic data") by any employee, in-cluding a temporary or leased em-ployee, or by an entity retained by you or for you to inspect, design, in-stall, maintain, repair or replace that system.

(3) The most we will pay under this Addi-tional Coverage - Interruption of Computer Operations is $2,500 for all loss sustained and expense sus-tained in any "coverage term", re-gardless of the number of interrup-tions or the number of "premises", lo-cations or computer systems in-volved. If loss payment relating to thefirst interruption does not exhaust this



amount, then the balance is available for loss or expense sustained as a result of subsequent interruptions inthat "coverage term". A balance re-maining at the end of a "coverageterm" does not increase the amount of insurance in the next "coverageterm". With respect to any interrup-tion which begins in one "coverageterm" and continues or results in ad-ditional loss or expense in that sub-sequent "coverage term", all loss andexpense is deemed to be sustainedin the "coverage term" in which theinterruption began.

(4) This Additional Coverage - Interrup-tion in Computer Operations doesnot apply to loss sustained or ex-pense sustained after the end of the"period of restoration", even if the amount of insurance stated in Para-graph d.(3) of this Additional Cover-age has not been exhausted.

e. Ingress and Egress

We will pay for the actual loss of "Busi-ness Income" you sustain and necessaryExtra Expense you sustain caused by theprevention of existing ingress or egress at a "premises" shown in the Declarationsdue to direct "loss" by a Covered Causeof Loss at a location contiguous to such"premises". However, coverage does not apply if ingress or egress from the "prem-ises" is prohibited by civil authority.

Ingress and egress coverage for "Busi-ness Income" will begin immediately after the time of the direct "loss" and will con-tinue for a period up to 30 consecutivedays.

Ingress and egress coverage for Extra Expense will begin at time of the direct "loss" and will continue for 30 consecutivedays or whenever your Ingress and Egress "business income" coverage ends, whichever occurs first.

6. Coverage Extension

The limit applicable to the Coverage Extension is in addition to the Limit of Insurance. SEC-TION D. ADDITIONAL CONDITION, 1. Coin-surance does not apply to this Coverage Ex-tension.

Newly Purchased or Leased Locations

a. You may extend your "Business Income"and Extra Expense coverages to apply toproperty located at:

(1) New buildings or additions while be-ing built on a "premises";

(2) Buildings you newly purchase or be-come required to insure by written contract; or

(3) Leased buildings or space thereinthat you are not required to insure.Such lease must be for a period of 12consecutive months or longer.

This does not apply to property situated at trade shows, fairs or exhibitions.

b. The most we will pay in total for "BusinessIncome" and Extra Expense loss under this Coverage Extension is $100,000 at each location described in Paragraph 6.a.

c. Insurance under this Coverage Extension will end when any of the following first oc-curs:

(1) This policy expires;

(2) 90 days pass from the date youbegin construction on that part of the building that would qualify as Cov-ered Property;

(3) 90 days pass from the date you pur-chase, lease, or become contractual-ly required to insure property de-scribed in Paragraphs 6.a.(2) and (3); or

(4) You report values to us when youacquire your new building or busi-ness personal property.

We will charge you additional premium forvalues reported from the date you purchase or lease the property or begin construction on that part of the building that would qualify as Covered Property.


The most we will pay for loss in any one occur-rence is the applicable Limit of Insurance shown inthe Declarations.

SECTION C. LOSS CONDITIONS


1. Appraisal

If we and you disagree on the amount of "Business Income" or Extra Expense loss, ei-ther may make written demand for an ap-praisal of the loss. In this event, each party willselect a competent and impartial appraiser.

The two appraisers will select an umpire. If they cannot agree, either may request that se-lection be made by a judge of a court having jurisdiction. The appraisers will state separate-ly the amount of "Business Income" or Extra



Expense loss. If they fail to agree, they willsubmit their differences to the umpire. A deci-sion agreed to by any two will be binding, however you retain the right to file suit against us. Each party will:


b. Bear the other expenses of the appraisal and umpire equally.

If there is an appraisal, we will still retain our right to deny the claim.

2. Duties in the Event of Loss

a. You must see that the following are donein the event you have a "Business In-come" or Extra Expense loss:

(1) Notify the police if a law may havebeen broken.

(2) Give us prompt notice of the direct"loss". Include a description of theproperty involved.

(3) As soon as possible, give us a de-scription of how, when, and wherethe direct "loss" occurred.

(4) Take all reasonable steps to protectthe Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insur-ance. However, we will not pay for any subsequent loss resulting from a cause of loss that is not a CoveredCause of Loss. Also, if feasible, setthe damaged property aside and inthe best possible order for examina-tion.

(5) As often as may be reasonably re-quired, permit us to inspect the prop-erty proving the loss and examine your books and records.

Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis,and permit us to make copies from your books and records.

(6) Send us a signed, sworn proof ofloss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with thenecessary forms.

(7) Cooperate with us in the investigationor settlement of the claim.

(8) If you intend to continue your busi-ness, you must resume all or part of

your "operations" as quickly as pos-sible.

b. We may examine any insured under oath, while not in the presence of any other in-sured and at such times as may be rea-sonably required, about any matter relat-ing to this insurance or the claim, includ-ing an insured's books and records. In the event of an examination, an insured's an-swers must be signed.

3. Loss Determination

a. The amount of "Business Income" losswill be determined based on:

(1) The Net Income of the business be-fore the direct "loss" occurred;

(2) The likely Net Income of the businessif no direct "loss" had occurred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable businessconditions caused by the impact of the Covered Cause of Loss on cus-tomers or on other businesses;

(3) The operating expenses, includingpayroll expenses, necessary to re-sume "operations" with the same quality of service that existed just be-fore the direct "loss"; and

(4) Other relevant sources of infor-mation, including:

(a) Your financial records and ac-counting procedures;

(b) Bills, invoices and other vouch-ers; and

(c) Deeds, liens or contracts.

b. The amount of Extra Expense will be de-termined based on:

(1) All expenses that exceed the normal operating expenses that would havebeen sustained by "operations" dur-ing the "period of restoration" if no di-rect "loss" had occurred. We will de-duct from the total of such expenses:

(a) The salvage value that remainsof any property bought for tem-porary use during the "period ofrestoration", once "operations"are resumed; and

(b) Any Extra Expense that is paid for by other insurance, except for insurance that is written sub-ject to the same plan, terms, conditions and provisions as thisinsurance; and



(2) Necessary expenses that reduce the"Business Income" loss that other-wise would have been incurred.

c. Resumption of Operations


(1) "Business Income" loss, other thanExtra Expense to the extent you canresume your "operations", in whole or in part, by using damaged or undam-aged property (including merchan-dise or stock) at the "premises" or elsewhere.

(2) Extra Expense loss to the extent youcan return "operations" to normal anddiscontinue such Extra Expense.

d. If you do not resume "operations", or do not resume "operations" as quickly aspossible, we will pay based on the lengthof time it would have taken to resume "operations" as quickly as possible.

4. Loss Payment

We will pay for insured loss within 30 days af-ter we receive the sworn proof of loss, if you have complied with all of the terms of this Coverage Part and:

a. We have reached agreement with you on the amount of "loss"; or

b. An appraisal award has been made.

SECTION D. ADDITIONAL CONDITION

1. Coinsurance

If a Coinsurance percentage is shown in the Declarations, the following condition applies in addition to the COMMON POLICY CONDI-TIONS and the COMMERCIAL PROPERTY CONDITIONS.

We will not pay the full amount of any "Busi-ness Income" loss if the Limit of Insurance for "Business Income" is less than:

a. The Coinsurance percentage shown for "Business Income" in the Declarations; times

b. The sum of:

(1) The Net Income (Net Profit or Lossbefore income taxes), and

(2) Operating expenses, including pay-roll expenses,

that would have been earned or incurred(had no direct "loss" occurred) by your "operations" at the "premises" for the 12months following the inception, or last previous anniversary date, of this Cover-age Part (whichever is later).

Instead, we will determine the most we will pay using the following steps:

1. Multiply the Net Income and operatingexpense for the 12 months following theinception, or last previous anniversary date, of this Coverage Part by the Coin-surance percentage;

2. Divide the Limit of Insurance for the de-scribed "premises" by the figure deter-mined in Step 1.; and

3. Multiply the total amount of loss by the figure determined in Step 2.

We will pay the amount determined in Step 3.or the limit of insurance, whichever is less. Forthe remainder, you will either have to rely on other insurance or absorb the loss yourself.

In determining operating expenses for the purpose of applying the Coinsurance condi-tion, the following expenses, if applicable,shall be deducted from the total of all operat-ing expenses:

1. Prepaid freight - outgoing;

2. Returns and allowances;

3. Discounts;

4. Bad debts;

5. Collection expenses;

6. Cost of raw stock and factory suppliesconsumed (including transportationcharges);

7. Cost of merchandise sold (including transportation charges);

8. Cost of other supplies consumed (includ-ing transportation charges);

9. Cost of services purchased from outsid-ers (not employees) to resell, that do not continue under contract;

10. Power, heat and refrigeration expensesthat do not continue under contract (if Form CP 15 11 is attached);

11. All payroll expenses or the amount of payroll expense excluded (if Form FA 465is attached); and

12. Special deductions for mining properties(royalties unless specifically included incoverage; actual depletion commonly known as unit or cost depletion - not per-centage depletion; welfare and retirement fund charges based on tonnage; hiredtrucks).

Example No. 1 (Underinsurance):When: The Net Income and operating

expenses for the 12 months follow-



ing the inception, or last previousanniversary date of this CoveragePart at "premises" would have been $400,000.

The Coinsurance percentage is 50%

The Limit of Insurance Is $150,000

"Business Income" loss is $80,000

Step 1: $400,000 X 50% = $200,000(the minimum amount of insurance to meet your Coinsurance re-quirements)

Step 2: $150,000 ÷ $200,000 = .75

Step 3: $ 80,000 X .75 = $60,000

We will pay no more than $60,000. The re-maining $20,000 is not covered.

Example No. 2 (Adequate Insurance):When: The Net Income and operating ex-

penses for the 12 months following the inception, or last previous anni-versary date of this Coverage Part atthe "premises" would have been $400,000.

The Coinsurance percentage is 50%

The Limit of Insurance Is $200,000


The minimum amount of insurance to meet your Coinsurance requirement is $200,000 ($400,000 x 50%). Therefore, the Limit of In-surance in this example is adequate and nopenalty applies. We will pay no more than $80,000 (amount of "loss").

This condition does not apply to Extra Ex-pense.

SECTION E. OPTIONAL COVERAGES

If shown as applicable in the Declarations, the fol-lowing Optional Coverages apply separately to each item.

1. Maximum Period of Indemnity

a. SECTION D. ADDITIONAL CONDI-TIONS, 1. Coinsurance does not apply to this Coverage Part at the "premises" towhich this Optional Coverage applies.

b. The most we will pay in total for "BusinessIncome" and Extra Expense loss is thelesser of:

(1) The amount of "Business Income"and Extra Expense loss sustained during the 120 days immediately fol-lowing the beginning of the "period ofrestoration"; or

(2) The Limit of Insurance shown in theDeclarations.

2. Monthly Limit of Indemnity

a. SECTION D. ADDITIONAL CONDI-TIONS, 1. Coinsurance does not apply to this Coverage Part at the "premises" towhich this Optional Coverage applies.

b. The most we will pay for "Business In-come" loss in each period of 30 consecu-tive days after the beginning of the "peri-od of restoration" is:

(1) The Limit of Insurance; multiplied by

(2) The fraction shown in the Declara-tions for this Optional Coverage.

Example:When: The "Business Income" Limit of In-

surance is $120,000

The fraction shown in the Declara-tions for this Optional Coverage is1/4

The most we will pay for loss in each period of 30 consecutive days is:$120,000 X 1/4 = $30,000.

If, in this example, the actual amount of "Busi-ness Income" loss is:

Days 1-30 $40,000Days 31-60 20,000Days 61-90 30,000

$90,000

We will pay:

Days 1-30 $30,000Days 31-60 20,000Days 61-90 30,000

$80,000

The remaining $10,000 is not covered.

3. Business Income Agreed Value

a. To activate this Optional Coverage:

(1) A Business Income Report/Work Sheet must be on file with the Com-pany and must show financial datafor your "operations":

(a) During the 12 months prior tothe date of the Work Sheet; and

(b) Estimated for the 12 monthsimmediately following the incep-tion of this Optional Coverage.

(2) The Declarations must indicate that the Business Income Agreed ValueOptional Coverage applies. The "Business Income" Limit of Insuranceindicated on the Declarations should



be at least equal to the Agreed Val-ue, which is determined by:

(a) The Coinsurance percentageshown in the Declarations; mul-tiplied by

(b) The amount of Net Income andOperating Expenses for the fol-lowing 12 months you report onthe Work Sheet.

b. Except as noted in c. below, the ADDI-TIONAL CONDITION Coinsurance issuspended until the expiration date of thisCoverage Part.

c. We will reinstate the ADDITIONAL CON-DITION Coinsurance automatically if youdo not submit a new Work Sheet and Agreed Value:

(1) When you request a change in your "Business Income" Limit of Insur-ance; or

(2) When you request the coinsurance percentage be changed on the WorkSheet.

d. If the "Business Income" Limit of Insur-ance is less than the Agreed Value, we will not pay more of any loss than theamount of loss multiplied by:

(1) The "Business Income" Limit of In-surance; divided by

(2) The Agreed Value.

Example:When: The Limit of Insurance is $100,000

The Agreed Value is $200,000


Step (a): $100,000 ÷ $200,000 = .50

Step (b): .50 X $80,000 = $40,000

We will pay $40,000. The remaining $40,000is not covered.

4. Extended Period of Indemnity

In SECTION A. COVERAGE, 5. Additional Coverages, c. Extended Business Income, the number "60" in Subparagraphs (1)(b) and(2)(b) is replaced by the number shown in theDeclarations for this Optional Coverage.

SECTION F. DEFINITIONS

1. "Business Income" means the:

a. Net income (Net Profit or Loss before in-come taxes) that would have beenearned or incurred; and

b. Continuing normal operating expensessustained, including payroll.

2. "Computer programs" means a set of relatedelectronic instructions which direct the opera-tions and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve orsend data.

3. "Coverage term" means the following individ-ual increment, or if a multi-year policy period,increments, of time, which comprise the policy period of this Coverage Part:

a. The year commencing on the Effective Date of this Coverage Part at 12:01 A.M. standard time at your mailing addressshown in the Declarations, and if a multi-year policy period, each consecutive an-nual period thereafter, or portion thereof if any period is for a period of less than 12months, constitute individual "coverageterms". The last "coverage term" ends at 12:00 A.M. standard time at your mailingaddress shown in the Declarations on theearlier of:



b. However, if after the issuance of thisCoverage Part, any "coverage term" isextended for an additional period of lessthan 12 months, that additional period of time will be deemed to be part of the last preceding "coverage term".

4. "Electronic data" means information, facts or "computer programs" stored as or on, createdor used on, or transmitted to or from computersoftware (including systems and applicationssoftware), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devicesor any other repositories of computer software which are used with electronically controlled equipment.

5. "Finished stock" means stock you have manufactured.

"Finished stock" also includes whiskey and al-coholic products being aged, unless there is a coinsurance percentage shown for "BusinessIncome" in the Declarations.

"Finished stock" does not include stock youhave manufactured that is held for sale on the "premises" of any retail outlet insured under this Coverage Part.



6 "Loss" means accidental physical loss or acci-dental physical damage.

7. "Operations" means:

a. Your business activities occurring at the"premises"; and

b. The tenantability of the "premises", if cov-erage for "Business Income" including"Rental Value" or "Rental Value" applies.

8. "Period of restoration" means the period oftime that:

a. Begins at the time of direct "loss".


(1) The date when the property at the"premises" should be repaired, rebuiltor replaced with reasonable speed and similar quality; or

(2) The date when business is resumed at a new permanent location.

c. "Period of restoration" does not includeany increased period required due to theenforcement of or compliance with any ordinance or law that:

(1) Regulates the construction, use or repair, or requires the tearing downof any property; or

(2) Requires any insured or others totest for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants".

d. The expiration date of the Coverage Part will not cut short the "period of restora-tion".

9. "Pollutants" means any solid, liquid, gaseousor thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, as-bestos, chemicals, petroleum, petroleum products and petroleum by-products, andwaste. Waste includes materials to be recy-cled, reconditioned or reclaimed. "Pollutants"include but are not limited to substances which are generally recognized in industry or government to be harmful or toxic to persons,

property, or the environment regardless of whether injury or damage is caused directly or indirectly by the "pollutants" and whether:

a. You are regularly or otherwise engaged inactivities which taint or degrade the envi-ronment; or

b. You use, generate or produce the "pollu-tant".

10. "Premises" means the Locations and Build-ings described in the Declarations.

11. "Rental Value" means "Business Income" that consists of:

a. Net income (Net Profit or Loss before in-come taxes) that would have been earnedor incurred as rental income from tenant occupancy of the "premises" described inthe Declarations as furnished andequipped by you, including fair rental val-ue of any portion of the "premises" which is occupied by you; and

b. Continuing normal operating expensesincurred in connection with that "premis-es", including:

(1) Payroll; and

(2) The amount of charges, which arethe legal obligation of the tenant(s)but would otherwise be your obliga-tions.

12. "Suspension" means:

a. The slowdown or cessation of your busi-ness activities; and

b. That a part or all of the "premises" is ren-dered untenantable if coverage for "Busi-ness Income" including "Rental Value" or"Rental Value" applies.

13. "Valuable papers and records" means in-scribed, printed or written documents, manu-scripts or records, including abstracts, books,card index systems, deeds, drawings, films,maps, mortgages, or proprietary information. But "valuable papers and records" does notmean "money" or "securities" or "electronicdata", including the materials on which the"electronic data" is recorded.



COMMERCIAL GENERAL LIABILITY COVERAGEPART DECLARATIONS

Attached to and forming part of POLICY NUMBER:

Named Insured is the same as it appears in the Common Policy Declarations

LIMITS OF INSURANCEEACH OCCURRENCE LIMIT $GENERAL AGGREGATE LIMIT $PRODUCTS-COMPLETED OPERATIONS AGGREGATE LIMIT $PERSONAL & ADVERTISING INJURY LIMIT $ ANY ONE PERSON OR

ORGANIZATIONDAMAGE TO PREMISES RENTED TO YOU LIMIT ANY ONE$100,000 limit unless otherwise indicated herein: $ PREMISESMEDICAL EXPENSE LIMIT$5,000 limit unless otherwise indicated herein: $ ANYONEPERSON

EPP 049 72 16

1,000,0002,000,0002,000,0001,000,000

SEE GA227

CLASSIFICATION CODENO.

PREMIUMBASE

RATE ADVANCE PREMIUM

A - AreaB - PayrollC - Gross SalesD - UnitsE - Other

Products /CompletedOperations

All Other Products /CompletedOperations

All Other

RESTAURANTS (IL) 16941 C602,118 .385 4.612 232 2,777

EXTENDED LIABILITY 20296 2% 125MP

The General Liability Coverage Part is subject to anannual minimum premium.

TOTAL ANNUAL PREMIUM $ 3,134

FORMS AND / OR ENDORSEMENTS APPLICABLE TO COMMERCIAL GENERAL LIABILITY COVERAGE PART:COMMERCIAL GENERAL LIABILITY COVERAGE FORMGA101 12/04NOTICE TO POLICYHOLDERS - MOBILE EQUIPMENT SUBJECT TO MOTOR VEHICLE INSURANCE LAWS

GA4251 01/06

PRODUCTS/COMPLETED OPERATIONS HAZARD REDEFINEDCG2407 01/96COMMERCIAL GENERAL LIABILITY EXTENDED ENDORSEMENTGA227 09/17EXCLUSION - ACCESS OR DISCLOSURE OF CONFIDENTIAL OR PERSONAL INFORMATION AND DATA-RELATED LIABILITY - WITH LIMITED BODILY INJURY EXCEPTION

GA3024 05/14

ILLINOIS CHANGES - KNOWN INJURY OR DAMAGEGA4205IL 10/01MOBILE EQUIPMENT SUBJECT TO MOTOR VEHICLE INSURANCE LAWSGA4250 11/05NOTICE TO POLICYHOLDERS - EXCLUSION - CONTRACTORS - PROFESSIONAL LIABILITY

GA4510 03/19

GA 532 07 08 Page ofEPP 049 72 16 1 1


Includes copyrighted material of InsuranceGA 101 12 04 Services Office, Inc., with its permission. Page 1 of 22

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

Various provisions in this Coverage Part restrictthis insurance. Read the entire Coverage Partcarefully to determine rights, duties and what isand is not covered.

Throughout this Coverage Part the words "you"and "your" refer to the Named Insured shown inthe Declarations, and any other person or organi-zation qualifying as a Named Insured under thisCoverage Part. The words "we", "us" and "our"refer to the Company providing this insurance.

The word "insured" means any person or organi-zation qualifying as such under SECTION II - WHOIS AN INSURED.

Other words and phrases that appear in quotationmarks have special meaning. Refer to SECTIONV - DEFINITIONS.

SECTION I - COVERAGES

COVERAGE A. BODILY INJURY AND PROP-ERTY DAMAGE LIABILITY

1. Insuring Agreement

a. We will pay those sums that the insuredbecomes legally obligated to pay asdamages because of "bodily injury" or"property damage" to which this insur-ance applies. We will have the right andduty to defend the insured against any"suit" seeking those damages. However,we will have no duty to defend the in-sured against any "suit" seeking dam-ages for "bodily injury" or "property dam-age" to which this insurance does notapply. We may, at our discretion, investi-gate any "occurrence" and settle anyclaim or "suit" that may result. But:

(1) The amount we will pay for damagesis limited as described in SECTIONIII - LIMITS OF INSURANCE; and

(2) Our right and duty to defend endswhen we have used up the applica-ble limit of insurance in the paymentof judgments or settlements underSECTION I - COVERAGES, COV-ERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY;SECTION I - COVERAGES, COV-ERAGE B. PERSONAL AND AD-VERTISING INJURY LIABILITY; ormedical expenses under SECTION I- COVERAGES, COVERAGE C.MEDICAL PAYMENTS.

No other obligation or liability to pay sumsor perform acts or services is coveredunless expressly provided for under

SUPPLEMENTARY PAYMENTS - COV-ERAGES A AND B.

b. This insurance applies to "bodily injury"and "property damage" only if:

(1) The "bodily injury" or "property dam-age" is caused by an "occurrence"that takes place in the "coverage ter-ritory";

(2) The "bodily injury" or "property dam-age" occurs during the policy period;and

(3) Prior to the "coverage term" in which"bodily injury" or "property damage"occurs, you did not know, per Para-graph 1.d. below, that the "bodily in-jury" or "property damage" had oc-curred or had begun to occur, inwhole or in part.

c. "Bodily injury" or "property damage"which:

(1) Occurs during the "coverage term";and

(2) Was not, prior to the "coverageterm", known by you, per Paragraph1.d. below, to have occurred;

includes any continuation, change or re-sumption of that "bodily injury" or "prop-erty damage" after the end of the "cover-age term" in which it first became knownby you.

d. You will be deemed to know that "bodilyinjury" or "property damage" has oc-curred at the earliest time when any"authorized representative":

(1) Reports all, or any part, of the "bodilyinjury" or "property damage" to us orany other insurer;

(2) Receives a written or verbal demandor claim for damages because of the"bodily injury" or "property damage";

(3) First observes, or reasonably shouldhave first observed, the "bodily in-jury" or "property damage";

(4) Becomes aware, or reasonablyshould have become aware, by anymeans other than as described in (3)above, that "bodily injury" or "prop-erty damage" had occurred or hadbegun to occur; or

(5) Becomes aware, or reasonablyshould have become aware, of a



condition from which "bodily injury"or "property damage" is substantiallycertain to occur.

e. Damages because of "bodily injury" in-clude damages claimed by any person ororganization for care, loss of services ordeath resulting at any time from the "bod-ily injury".

2. Exclusions

This insurance does not apply to:

a. Expected or Intended Injury

"Bodily injury" or "property damage"which may reasonably be expected to re-sult from the intentional or criminal acts ofthe insured or which is in fact expected orintended by the insured, even if the injuryor damage is of a different degree or typethan actually expected or intended. Thisexclusion does not apply to "bodily injury"resulting from the use of reasonable forceto protect persons or property.

b. Contractual Liability

"Bodily injury" or "property damage" forwhich the insured is obligated to paydamages by reason of the assumption ofliability in a contract or agreement. Thisexclusion does not apply to liability fordamages:

(1) That the insured would have in theabsence of the contract or agree-ment; or

(2) Assumed in a contract or agreementthat is an "insured contract", pro-vided the "bodily injury" or "propertydamage" occurs subsequent to theexecution of the contract or agree-ment. When a claim for such "bodilyinjury" or "property damage" ismade, we will defend that claim pro-vided the insured has assumed theobligation to defend such claim in the"insured contract". Such defensepayments will not reduce the limits ofinsurance.

c. Liquor Liability

"Bodily injury" or "property damage" forwhich any insured may be held liable byreason of:

(1) Causing or contributing to the intoxi-cation of any person;

(2) The furnishing of alcoholic bever-ages to a person under the legaldrinking age or under the influenceof alcohol; or

(3) Any statute, ordinance or regulationrelating to the sale, gift, distributionor use of alcoholic beverages.

This exclusion applies only if you are inthe business of manufacturing, distribut-ing, selling, serving or furnishing alcoholicbeverages.

d. Workers' Compensation and SimilarLaws

Any obligation of the insured under aworkers' compensation, disability benefitsor unemployment compensation law orany similar law.

e. Employer's Liability

"Bodily injury" to:

(1) An "employee" of the insured sus-tained in the "workplace";

(2) An "employee" of the insured arisingout of the performance of duties re-lated to the conduct of the insured'sbusiness; or

(3) The spouse, child, parent, brother orsister of that "employee" as a conse-quence of Paragraphs (1) or (2)above.

This exclusion applies:

(1) Whether the insured may be liableas an employer or in any other ca-pacity; and

(2) To any obligation to share damageswith or repay someone else whomust pay damages because of theinjury.

This exclusion does not apply to liabilityassumed by the insured under an "in-sured contract".

f. Pollutant

(1) "Bodily injury" or "property damage"arising out of the actual, alleged orthreatened discharge, dispersal,seepage, migration, release, escapeor emission of "pollutants":

(a) At or from any premises, site orlocation which is or was at anytime owned or occupied by, orrented or loaned to, any insured.However, Paragraph (a) doesnot apply to:

1) "Bodily injury" to any personinjured while on any prem-ises, site or location ownedor occupied by, or rented orloaned to, you provided:



a) The injury is caused bythe inadequate ventila-tion of vapors;

b) The person injured isfirst exposed to suchvapors during the pol-icy period; and

c) Within 30 days of suchfirst exposure, the per-son injured is clinicallydiagnosed or treatedby a physician for themedical conditioncaused by the expo-sure to such vapors.However, Paragraph c)does not apply if the"bodily injury" is causedby vapors produced byor originating fromequipment that is usedto heat, cool or dehu-midify the building, orequipment that is usedto heat water for per-sonal use, by thebuilding's occupants ortheir guests.

This exception 1) shall ap-ply only to Named Insureds;we shall have no duty todefend or pay damages forany person or organizationthat is not a Named In-sured. However, this para-graph does not apply if the"bodily injury" is caused byvapors produced by ororiginating from equipmentthat is used to heat, cool ordehumidify the building, orequipment that is used toheat water for personal use,by the building's occupantsor their guests.

For the purpose of the ex-ception granted in Para-graph 1) only, vaporsmeans any gaseous or air-borne irritant or airbornecontaminant, includingsmoke, fumes, vapor orsoot, but excluding asbes-tos, which is discharged,dispersed, emitted, re-leased or escapes frommaterials, machinery orequipment used in theservice or maintenance ofthe premises. Vapors doesnot mean any gaseous or

airborne irritants or con-taminants used in a manu-facturing process or whichis the product or by-productof any manufacturing proc-ess;

2) "Bodily injury" or "propertydamage" for which you maybe held liable, if you are acontractor, and the owneror lessee of such premises,site or location has beenadded to this Coverage Partas an additional insuredwith respect to your ongo-ing operations or "yourwork" performed for thatadditional insured at thatpremises, site or locationand such premises, site orlocation is not and neverwas owned or occupied by,or rented or loaned to, anyinsured, other than that ad-ditional insured; or

3) "Bodily injury" or "propertydamage" arising out of heat,smoke or fumes from a"hostile fire";

(b) At or from any premises, site orlocation which is or was at anytime used by or for any insuredor others for the handling, stor-age, disposal, processing ortreatment of waste;

(c) Which are or were at any timetransported, handled, stored,treated, disposed of, or proc-essed as waste by or for:

1) Any insured; or

2) Any person or organizationfor whom you may be le-gally responsible;

(d) At or from any premises, site orlocation on which any insured orany contractors or subcontrac-tors working directly or indirectlyon any insured's behalf areperforming operations if the"pollutants" are brought on or tothe premises, site or location inconnection with such operationsby such insured, contractor orsubcontractor. However, Para-graph (d) does not apply to:

1) "Bodily injury" or "propertydamage" arising out of thedischarge, dispersal, seep-age, migration, release, es-



cape or emission of fuels,lubricants or other operatingfluids, or exhaust gases,which are needed to per-form, or are the result of,the normal electrical, hy-draulic or mechanical func-tions necessary for the op-eration of "mobile equip-ment" or its parts, if suchfuels, lubricants or otheroperating fluids, or exhaustgases, escape, seep or mi-grate, or are discharged,dispersed, released oremitted from a vehicle partdesigned to hold, store orreceive them. This excep-tion does not apply if the fu-els, lubricants or other op-erating fluids, or exhaustgases, escape, seep or mi-grate, or are discharged,dispersed, released oremitted with the intent tocause "bodily injury" or"property damage" or withthe knowledge that "bodilyinjury" or "property damage"is substantially certain tooccur, or if such fuels, lubri-cants or other operatingfluids, or exhaust gases,are brought on or to thepremises, site or locationwith such intent to escape,seep or migrate, or be dis-charged, dispersed, re-leased or emitted as part ofthe operations being per-formed by such insured,contractor or subcontractor;

2) "Bodily injury" or "propertydamage" sustained within abuilding and caused by therelease of gases, fumes orvapors from materialsbrought into that building inconnection with operationsbeing performed by you oron your behalf by a con-tractor or subcontractor; or

3) "Bodily injury" or "propertydamage" arising out of heat,smoke or fumes from a"hostile fire"; or

(e) At or from any premises, site orlocation on which any insured orany contractors or subcontrac-tors working directly or indirectlyon any insured's behalf areperforming operations if the op-

erations are to test for, monitor,clean up, remove, contain, treat,detoxify or neutralize, or in anyway respond to, or assess theeffects of, "pollutants".

(2) Any loss, cost or expense arising outof any:

(a) Request, demand, order orstatutory or regulatory require-ment that any insured or otherstest for, monitor, clean up, re-move, contain, treat, detoxify orneutralize, or in any way re-spond to, or assess the effectsof, "pollutants"; or

(b) Claim or suit by or on behalf of agovernmental authority for dam-ages because of testing for,monitoring, cleaning up, remov-ing, containing, treating, detoxi-fying or neutralizing, or in anyway responding to, or assessingthe effects of, "pollutants".

However, Paragraphs (2)(a) and (b)do not apply to liability for damagesbecause of "property damage" thatthe insured would have in the ab-sence of such request, demand, or-der or statutory or regulatory re-quirement, or such claim or "suit" byor on behalf of a governmentalauthority.

g. Aircraft, Auto or Watercraft

"Bodily injury" or "property damage" aris-ing out of the ownership, maintenance,use or entrustment to others of any air-craft, "auto" or watercraft owned or oper-ated by or rented or loaned to any in-sured. Use includes operation and"loading or unloading".

This exclusion applies even if the claimsagainst any insured allege negligence orother wrongdoing in the supervision, hir-ing, employment, training or monitoring ofothers by that insured, if the "occurrence"which caused the "bodily injury" or "prop-erty damage" involved the ownership,maintenance, use or entrustment to oth-ers of any aircraft, "auto" or watercraftthat is owned or operated by or rented orloaned to any insured.

This exclusion does not apply to:

(1) A watercraft while ashore on prem-ises you own or rent;

(2) A watercraft you do not own that is:

(a) Less than 51 feet long; and



(b) Not being used to carry personsor property for a charge;

(3) Parking an "auto" on, or on the waysnext to, premises you own or rent,provided the "auto" is not owned byor rented or loaned to you or the in-sured;

(4) Liability assumed under any "insuredcontract" for the ownership, mainte-nance or use of aircraft or watercraft;or

(5) "Bodily injury" or "property damage"arising out of:

(a) The operation of machinery orequipment that is on, attachedto, or part of, a land vehicle thatwould qualify under the defini-tion of "mobile equipment" if itwere not subject to a compul-sory or financial responsibilitylaw or other motor vehicle insur-ance law in the state where it islicensed or principally garaged;or

(b) The operation of any of the ma-chinery or equipment listed inParagraph f.(2) or f.(3) of thedefinition of "mobile equipment".

h. Mobile Equipment

"Bodily injury" or "property damage" aris-ing out of:

(1) The transportation of "mobile equip-ment" by an "auto" owned or oper-ated by or rented or loaned to anyinsured; or

(2) The use of "mobile equipment" in, orwhile in practice for, or while beingprepared for, any prearranged rac-ing, speed, demolition, or stuntingactivity.

i. War

"Bodily injury" or "property damage",however caused, arising, directly or indi-rectly, out of:

(1) War, including undeclared or civilwar;

(2) Warlike action by a military force, in-cluding action in hindering or de-fending against an actual or ex-pected attack, by any government,sovereign or other authority usingmilitary personnel or other agents; or

(3) Insurrection, rebellion, revolution,usurped power, or action taken by

governmental authority in hinderingor defending against any of these.

j. Damage to Property

"Property damage" to:

(1) Property you own, rent or occupy,including any costs or expenses in-curred by you, or any other person,organization or entity, for repair, re-placement, enhancement, restora-tion or maintenance of such propertyfor any reason, including preventionof injury to a person or damage toanother's property;

(2) Premises you sell, give away orabandon, if the "property damage"arises out of any part of those prem-ises;

(3) Property loaned to you;

(4) Personal property in the care, cus-tody or control of an insured;

(5) That particular part of real propertyon which you or any contractors orsubcontractors working directly orindirectly on your behalf are per-forming operations, if the "propertydamage" arises out of those opera-tions; or

(6) That particular part of any propertythat must be restored, repaired orreplaced because "your work" wasincorrectly performed on it.

Paragraphs (1), (3) and (4) of this exclu-sion do not apply to "property damage"(other than damage by fire or explosion)to premises, including the contents ofsuch premises, rented to you for a periodof 7 or fewer consecutive days, for whichthe amount we will pay is limited to theDamage To Premises Rented To YouLimit as described in SECTION III - LIM-ITS OF INSURANCE.

Paragraph (2) of this exclusion does notapply if the premises are "your work" andwere never occupied, rented or held forrental by you.

Paragraphs (3), (4), (5) and (6) of this ex-clusion do not apply to liability assumedunder a sidetrack agreement.

Paragraph (6) of this exclusion does notapply to "property damage" included inthe "products-completed operations haz-ard".

k. Damage to Your Product

"Property damage" to "your product"arising out of it or any part of it.



l. Damage to Your Work

"Property damage" to "your work" arisingout of it or any part of it and included inthe "products-completed operations haz-ard".

This exclusion does not apply if the dam-aged work or the work out of which thedamage arises was performed on yourbehalf by a subcontractor.

m. Damage to Impaired Property or Prop-erty Not Physically Injured

"Property damage" to "impaired property"or property that has not been physicallyinjured, arising out of:

(1) A defect, deficiency, inadequacy ordangerous condition in "your prod-uct" or "your work"; or

(2) A delay or failure by you or anyoneacting on your behalf to perform acontract or agreement in accordancewith its terms.

This exclusion does not apply to the lossof use of other property arising out ofsudden and accidental physical injury to"your product" or "your work" after it hasbeen put to its intended use.

n. Recall of Products, Work or ImpairedProperty

Any liability or damages claimed for anyloss, cost or expense incurred by you orothers for the loss of use, withdrawal, re-call, inspection, repair, replacement, ad-justment, removal or disposal of:

(1) "Your product";

(2) "Your work"; or

(3) "Impaired property";

if such product, work or property is with-drawn or recalled from the market or fromuse by any person or organization be-cause of a known or suspected defect,deficiency, inadequacy or dangerouscondition in it.

o. Personal and Advertising Injury

"Bodily injury" arising out of "personal andadvertising injury".

p. Asbestos

"Bodily injury" or "property damage" aris-ing out of, attributable to, or any way re-lated to asbestos in any form or trans-mitted in any manner.

q. Employment-Related Practices

"Bodily injury" to:

(1) A person arising out of any:

(a) Refusal to employ that person;

(b) Termination of that person'semployment; or

(c) Other employment-related prac-tices, policies, acts or omissionsincluding but not limited to coer-cion, criticism, demotion,evaluation, failure to promote,reassignment, discipline, defa-mation, harassment, humiliationor discrimination directed at thatperson; or

(2) The spouse, child, parent, brother orsister of that person as a conse-quence of "bodily injury" to that per-son at whom any of the employment-related practices described in Para-graphs (a), (b) or (c) above is di-rected.




r. Additional Insured Prior Knowledge

An additional insured added by attach-ment of an endorsement to this CoveragePart that is seeking coverage for a claimor "suit", if that additional insured knew,per the following paragraph, that "bodilyinjury" or "property damage" had oc-curred or had begun to occur, in whole orin part, prior to the "coverage term" inwhich such "bodily injury" or "propertydamage" occurs or begins to occur.

An additional insured added by attach-ment of an endorsement to this CoveragePart will be deemed to have known that"bodily injury" or "property damage" hasoccurred or has begun to occur at theearliest time when that additional insured,or any one of its owners, members, part-ners, managers, executive officers, "em-ployees" assigned to manage that addi-tional insured's insurance program, or"employees" assigned to give or receivenotice of an "occurrence", "personal andadvertising injury" offense, claim or "suit":





(3) First observes, or reasonably shouldhave first observed, the "bodily in-jury" or "property damage";

(4) Becomes aware, or reasonablyshould have become aware, by anymeans other than as described in (3)above, that "bodily injury" or "prop-erty damage" had occurred or hadbegun to occur; or

(5) Becomes aware, or reasonablyshould have become aware, of acondition from which "bodily injury"or "property damage" is substantiallycertain to occur.

s. Electronic Data

Damages arising out of the loss of, lossof use of, damage to, corruption of, in-ability to access, or inability to manipulate"electronic data".

t. Distribution of Material in Violation ofStatutes

"Bodily injury" or "property damage" aris-ing directly or indirectly out of any actionor omission that violates or is alleged toviolate:

a. The Telephone Consumer ProtectionAct (TCPA), including any amend-ment of or addition to such law; or

b. The CAN-SPAM Act of 2003, includ-ing any amendment of or addition tosuch law; or

c. Any statute, ordinance or regulation,other than the TCPA or CAN-SPAMAct of 2003, that prohibits or limits thesending, transmitting, communicatingor distribution of material or informa-tion.

Exclusions c. through q. do not apply to"property damage" by fire or explosion topremises while rented to you or temporarilyoccupied by you with permission of the owner,for which the amount we will pay is limited tothe Damage to Premises Rented To You Limitas described in SECTION III - LIMITS OF IN-SURANCE.

COVERAGE B. PERSONAL AND ADVERTISINGINJURY LIABILITY


a. We will pay those sums that the insuredbecomes legally obligated to pay asdamages because of "personal and ad-vertising injury" to which this insuranceapplies. We will have the right and dutyto defend the insured against any "suit"seeking those damages. However, wewill have no duty to defend the insuredagainst any "suit" seeking damages for"personal and advertising injury" to whichthis insurance does not apply. We may,at our discretion, investigate any offenseand settle any claim or "suit" that may re-sult. But:


(2) Our right and duty to defend endswhen we have used up the applica-ble limit of insurance in the paymentof judgments or settlements underSECTION I - COVERAGES, COV-ERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY;SECTION I - COVERAGES, COV-ERAGE B. PERSONAL AND AD-VERTISING INJURY LIABILITY; ormedical expenses under SECTION I- COVERAGES, COVERAGE C.MEDICAL PAYMENTS.

No other obligation or liability to pay sumsor perform acts or services is coveredunless expressly provided for underSUPPLEMENTARY PAYMENTS - COV-ERAGES A AND B.

b. This insurance applies to "personal andadvertising injury" only if:

(1) The "personal and advertising injury"is caused by an offense arising outof your business; and

(2) The "personal and advertising injury"offense was committed in the "cov-erage territory" during the policy pe-riod; and

(3) Prior to the "coverage term" in whichthe "personal and advertising injury"offense is committed, you did notknow, per Paragraph 1.d. below, thatthe offense had been committed orhad begun to be committed, in wholeor in part.

c. "Personal and advertising injury" causedby an offense which:

(1) Was committed during the "coverageterm"; and



(2) Was not, prior to the "coverageterm", known by you, per Paragraph1.d. below, to have been committed;

includes any continuation, change or re-sumption of that offense after the end ofthe "coverage term" in which it first be-came known by you.

d. You will be deemed to know that a "per-sonal and advertising injury" offense hasbeen committed at the earliest time whenany "authorized representative":

(1) Reports all, or any part, of the "per-sonal and advertising injury" to us orany other insurer;

(2) Receives a written or verbal demandor claim for damages because of the"personal and advertising injury";

(3) First observes, or reasonably shouldhave first observed, the offense thatcaused the "personal and advertis-ing injury";

(4) Becomes aware, or reasonablyshould have become aware, by anymeans, other than as described in(3) above, that the offense had beencommitted or had begun to be com-mitted; or

(5) Becomes aware, or reasonablyshould have become aware, of acondition from which "personal andadvertising injury" is substantiallycertain to occur.

2. Exclusions


a. Knowing Violation of Rights of Another

"Personal and advertising injury" causedby or at the direction of the insured withthe knowledge that the act would violatethe rights of another and would inflict"personal and advertising injury".

b. Material Published With Knowledge ofFalsity

"Personal and advertising injury" arisingout of oral or written publication of mate-rial, if done by or at the direction of the in-sured with knowledge of its falsity.

c. Material Published Prior to CoverageTerm

"Personal and advertising injury" arisingout of oral or written publication of mate-rial whose first publication took place be-fore the later of the following:

(1) The inception of this Coverage Part;or

(2) The "coverage term" in which insur-ance coverage is sought.

d. Criminal Acts

"Personal and advertising injury" arisingout of a criminal act committed by or atthe direction of the insured.

e. Contractual Liability

"Personal and advertising injury" forwhich the insured is obligated to paydamages by reason of the assumption ofliability in a contract or agreement. Thisexclusion does not apply to liability fordamages:

(1) That the insured would have in theabsence of the contract or agree-ment; or

(2) Assumed in a contract or agreementthat is an "insured contract", pro-vided the "personal and advertisinginjury" is caused by or arises out ofan offense committed subsequent tothe execution of the contract oragreement. When a claim for such"personal and advertising injury" ismade, we will defend that claim, pro-vided the insured has assumed theobligation to defend such claim in the"insured contract". Such defensepayments will not reduce the limits ofinsurance.

f. Breach of Contract

"Personal and advertising injury" arisingout of a breach of contract, except an im-plied contract to use another's advertisingidea in your "advertisement".

g. Quality or Performance of Goods -Failure to Conform to Statements

"Personal and advertising injury" arisingout of the failure of goods, products orservices to conform with any statement ofquality or performance made in your "ad-vertisement".

h. Wrong Description of Prices

"Personal and advertising injury" arisingout of the wrong description of the priceof goods, products or services stated inyour "advertisement".

i. Infringement of Copyright, Patent,Trademark or Trade Secret

"Personal and advertising injury" arisingout of the infringement of copyright, pat-



ent, trademark, trade secret or other in-tellectual property rights.

However, this exclusion does not apply toinfringement, in your "advertisement", ofcopyright, trade dress or slogan.

j. Insureds in Media and Internet TypeBusinesses

"Personal and advertising injury" com-mitted by an insured whose business is:

(1) Advertising, broadcasting, publishingor telecasting;

(2) Designing or determining content ofweb-sites for others; or

(3) An Internet search, access, contentor service provider.

However, this exclusion does not apply toParagraphs 17. a., b. and c. of "personaland advertising injury" under SECTION V- DEFINITIONS.

For the purposes of this exclusion, theplacing of frames, borders or links, or ad-vertising, for you or others anywhere onthe Internet is not, by itself, consideredthe business of advertising, broadcasting,publishing or telecasting.

k. Electronic Chatrooms or BulletinBoards

"Personal and advertising injury" arisingout of an electronic chatroom or bulletinboard any insured hosts, owns, or overwhich any insured exercises control.

l. Unauthorized Use of Another's Nameor Product

"Personal and advertising injury" arisingout of the unauthorized use of another'sname or product in your e-mail address,domain name or metatag, or any othersimilar tactics to mislead another's poten-tial customers.

m. Employment Related Practices

"Personal and advertising injury" to:

(1) A person arising out of any:

(a) Refusal to employ that person;

(b) Termination of that person'semployment; or

(c) Other employment-related prac-tices, policies, acts or omissionsincluding but not limited to coer-cion, criticism, demotion,evaluation, failure to promote,reassignment, discipline, defa-mation, harassment, humiliation

or discrimination directed at thatperson; or

(2) The spouse, child, parent, brother orsister of that person as a conse-quence of "personal and advertisinginjury" to that person at whom any ofthe employment-related practicesdescribed in Paragraphs (a), (b) or(c) above is directed.




n. Pollutant

"Personal and advertising injury" arisingout of the actual, alleged or threateneddischarge, dispersal, seepage, migration,release, escape or emission of "pollut-ants" at any time.

o. Pollutant-Related

Any loss, cost or expense arising out ofany:

(1) Request, demand, order or statutoryor regulatory requirement that anyinsured or others test for, monitor,clean up, remove, contain, treat,detoxify or neutralize, or in any wayrespond to, or assess the effects of,"pollutants"; or

(2) Claim or suit by or on behalf of agovernmental authority for damagesbecause of testing for, monitoring,cleaning up, removing, containing,treating, detoxifying or neutralizing,or in any way responding to, or as-sessing the effects of, "pollutants".

p. Asbestos

"Personal and advertising injury" arisingout of, attributable to, or any way relatedto asbestos in any form or transmitted inany manner.

q. Additional Insured Prior Knowledge

An additional insured added by attach-ment of an endorsement to this CoveragePart that is seeking coverage for a claimor "suit", if that additional insured knew,per the following paragraph, that a "per-sonal and advertising injury" offense hadbeen committed or had begun to becommitted, in whole or in part, prior to the"coverage term" in which such offense



was committed or began to be commit-ted.

An additional insured added by attach-ment of an endorsement to this CoveragePart will be deemed to have known that a"personal and advertising injury" offensehas been committed or has begun to becommitted at the earliest time when thatadditional insured, or any one of its own-ers, members, partners, managers, ex-ecutive officers, "employees" assigned tomanage that additional insured's insur-ance program, or "employees" assignedto give or receive notice of an "occur-rence", "personal and advertising injury"offense, claim or "suit":

(1) Reports all, or any part, of the "per-sonal and advertising injury" to us orany other insurer;

(2) Receives a written or verbal demandor claim for damages because of the"personal and advertising injury";

(3) First observes, or reasonably shouldhave first observed, the offense thatcaused the "personal and advertis-ing injury";

(4) Becomes aware, or reasonablyshould have become aware, by anymeans other than as described in (3)above, that the "personal and adver-tising injury" offense had been com-mitted or had begun to be commit-ted; or

(5) Becomes aware, or reasonablyshould have become aware, of acondition from which "personal andadvertising injury" is substantiallycertain to occur.

r. War

"Personal and advertising injury", how-ever caused, arising, directly or indirectly,out of:



(3) Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hinderingor defending against any of these.

s. Distribution of Material in Violation ofStatutes

"Personal and advertising injury" arisingdirectly or indirectly out of any action oromission that violates or is alleged toviolate:

a. The Telephone Consumer ProtectionAct (TCPA), including any amend-ment of or addition to such law; or

b. The CAN-SPAM Act of 2003, includ-ing any amendment of or addition tosuch law; or

c. Any statute, ordinance or regulation,other than the TCPA or CAN-SPAMAct of 2003, that prohibits or limits thesending, transmitting, communicatingor distribution of material or informa-tion.

COVERAGE C. MEDICAL PAYMENTS


a. We will pay medical expenses as de-scribed below for "bodily injury" causedby an accident:

(1) On premises you own or rent;

(2) On ways next to premises you ownor rent; or

(3) Because of your operations;

provided that:

(1) The accident takes place in the"coverage territory" and during thepolicy period;

(2) The expenses are incurred and re-ported to us within three years of thedate of the accident; and

(3) The injured person submits to ex-amination, at our expense, by physi-cians of our choice as often as wereasonably require.

b. We will make these payments regardlessof fault. These payments will not exceedthe applicable limit of insurance. We willpay reasonable expenses for:

(1) First aid administered at the time ofan accident;

(2) Necessary medical, surgical, x-rayand dental services, including pros-thetic devices; and

(3) Necessary ambulance, hospital,professional nursing and funeralservices.

2. Exclusions

We will not pay expenses for "bodily injury":



a. Any Insured

To any insured, except "volunteer work-ers".

b. Hired Person

To a person hired to do work for or onbehalf of any insured or a tenant of anyinsured.

c. Injury on Normally Occupied Premises

To a person injured on that part of prem-ises you own or rent that the person nor-mally occupies.

d. Workers' Compensation and SimilarLaws

To a person, whether or not an "em-ployee" of any insured, if benefits for the"bodily injury" are payable or must beprovided under a workers' compensationor disability benefits law or a similar law.

e. Athletic Activities

To any person injured while officiating,coaching, practicing for, instructing orparticipating in any physical exercises orgames, sports, or athletic contests or ex-hibitions of an athletic or sports nature.

f. Products-Completed Operations Haz-ard

Included within the "products-completedoperations hazard".

g. Coverage A Exclusions

Excluded under COVERAGE A. BODILYINJURY AND PROPERTY DAMAGE LI-ABILITY.

SUPPLEMENTARY PAYMENTS - COVERAGESA AND B

We will pay, with respect to any claim we investi-gate or settle, or any "suit" against an insured wedefend:

1. All expenses we incur.

2. Up to $250 for cost of bail bonds required be-cause of accidents or traffic law violationsarising out of the use of any vehicle to whichthe Bodily Injury Liability Coverage applies.We do not have to furnish these bonds.

3. The cost of bonds to release attachments, butonly for bond amounts within the applicablelimit of insurance. We do not have to furnishthese bonds.

4. All reasonable expenses incurred by the in-sured at our request to assist us in the inves-tigation or defense of the claim or "suit", in-

cluding actual loss of earnings up to $250 aday because of time off from work.

5. All costs taxed against the insured in the"suit".

6. Prejudgment interest awarded against theinsured on that part of the judgment we be-come obligated to pay and which falls withinthe applicable limit of insurance. If we makean offer to pay the applicable limit of insur-ance, we will not pay any prejudgment interestbased on that period of time after the offer.

7. All interest on the full amount of any judgmentthat accrues after entry of the judgment andbefore we have paid, offered to pay, or de-posited in court the part of the judgment thatis within the applicable limit of insurance.

These payments will not reduce the limits of insur-ance.

SECTION II - WHO IS AN INSURED

1. If you are designated in the Declarations as:

a. An individual, you and your spouse areinsureds, but only with respect to theconduct of a business of which you arethe sole owner.

b. A partnership or joint venture, you are aninsured. Your members, your partners,and their spouses are also insureds, butonly with respect to the conduct of yourbusiness.

c. A limited liability company, you are an in-sured. Your members are also insureds,but only with respect to the conduct ofyour business. Your managers are in-sureds, but only with respect to their du-ties as your managers.

d. An organization other than a partnership,joint venture or limited liability company,you are an insured. Your "executive offi-cers" and directors are insureds, but onlywith respect to their duties as your offi-cers or directors. Your stockholders arealso insureds, but only with respect totheir liability as stockholders.

e. A trust, you are an insured. Your trusteesare also insureds, but only with respect totheir duties as trustees.

2. Each of the following is also an insured:

a. Your "volunteer workers" only while per-forming duties related to the conduct ofyour business, or your "employees",other than either your "executive officers"(if you are an organization other than apartnership, joint venture or limited liabilitycompany) or your managers (if you are alimited liability company), but only for actswithin the scope of their employment by



you or while performing duties related tothe conduct of your business. However,none of these "employees" or "volunteerworkers" are insureds for:

(1) "Bodily injury" or "personal and ad-vertising injury":

(a) To you, to your partners ormembers (if you are a partner-ship or joint venture), to yourmembers (if you are a limited li-ability company), to a co-"employee" while in the courseof his or her employment orperforming duties related to theconduct of your business, or toyour other "volunteer workers"while performing duties relatedto the conduct of your business;

(b) To the spouse, child, parent,brother or sister of that co-"employee" or "volunteerworker" as a consequence ofParagraph (1)(a) above;

(c) For which there is any obligationto share damages with or repaysomeone else who must paydamages because of the injurydescribed in Paragraphs (1)(a)or (b) above; or

(d) Arising out of his or her provid-ing or failing to provide profes-sional health care services.

(2) "Property damage" to property:

(a) Owned, occupied or used by; or

(b) Rented to, in the care, custodyor control of, or over whichphysical control is being exer-cised for any purpose by,

you, any of your "employees", "vol-unteer workers", any partner ormember (if you are a partnership orjoint venture), or any member (if youare a limited liability company).

b. Any person (other than your "employee"or "volunteer worker"), or any organiza-tion while acting as your real estate man-ager.

c. Any person or organization having propertemporary custody of your property if youdie, but only:

(1) With respect to liability arising out ofthe maintenance or use of that prop-erty; and

(2) Until your legal representative hasbeen appointed.

d. Your legal representative if you die, butonly with respect to duties as such. Thatrepresentative will have all your rightsand duties under this Coverage Part.

3. Any organization you newly acquire or form,other than a partnership, joint venture or lim-ited liability company, and over which youmaintain ownership or majority interest, willqualify as a Named Insured if there is no othersimilar insurance available to that organiza-tion. However:

a. Insurance under this provision is affordedonly until the 90th day after you acquireor form the organization or the end of thepolicy period, whichever is earlier;

b. COVERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY doesnot apply to "bodily injury" or "propertydamage" that occurred before you ac-quired or formed the organization; and

c. COVERAGE B. PERSONAL AND AD-VERTISING INJURY LIABILITY does notapply to "personal and advertising injury"arising out of an offense committed be-fore you acquired or formed the organi-zation.

No person or organization is an insured with re-spect to the conduct of any current or past part-nership, joint venture or limited liability companythat is not shown as a Named Insured in the Dec-larations.

SECTION III - LIMITS OF INSURANCE

1. The Limits of Insurance shown in the Declara-tions and the rules below fix the most we willpay regardless of the number of:

a. Insureds;

b. Claims made or "suits" brought; or

c. Persons or organizations making claimsor bringing "suits".

2. a. The General Aggregate Limit is the mostwe will pay for the sum of:

(1) Medical expenses under COVER-AGE C. MEDICAL PAYMENTS;

(2) Damages under COVERAGE A.BODILY INJURY AND PROPERTYDAMAGE LIABILITY, except dam-ages because of "bodily injury" or"property damage" included in the"products-completed operationshazard"; and

(3) Damages under COVERAGE B.PERSONAL AND ADVERTISINGINJURY LIABILITY.

This General Aggregate Limit will not ap-ply if either the Location General Aggre-



gate Limit of Insurance, Paragraph 2.b.,or the Construction Project General Ag-gregate Limit of Insurance, Paragraph2.c. applies.

b. A separate Location General AggregateLimit of Insurance, equal to the amount ofthe General Aggregate Limit shown in theDeclarations, shall apply to each locationowned by, or rented or leased to you andis the most we will pay for the sum of:


(2) Medical expenses under COVER-AGE C. MEDICAL PAYMENTS,

which can be attributed to operations atonly a single location owned by, or rentedor leased to you.

c. A separate Construction Project GeneralAggregate Limit of Insurance, equal tothe amount of the General AggregateLimit shown in the Declarations, shall ap-ply to each construction project and is themost we will pay for the sum of:


(2) Medical expenses under COVER-AGE C. MEDICAL PAYMENTS;

which can be attributed only to ongoingoperations and only at a single construc-tion project.

d. Only for the purpose of determining whichGeneral Aggregate Limit of Insurance,2.a., 2.b., or 2.c., applies:

(1) Location means premises involvingthe same or connecting lots, orpremises, whose connection is inter-rupted only by a street, roadway,waterway or right-of-way of a rail-road.

(2) Construction project means a loca-tion you do not own, rent or leasewhere ongoing improvements, al-terations, installation, demolition ormaintenance work is performed byyou or on your behalf. All connectedongoing improvements, alterations,installation, demolition or mainte-nance work performed by you or on

your behalf at the same location forthe same persons or organizations,no matter how often or under howmany different contracts, will bedeemed to be a single constructionproject.

3. The Products-Completed Operations Aggre-gate Limit is the most we will pay under COV-ERAGE A. BODILY INJURY AND PROP-ERTY DAMAGE LIABILITY for damages be-cause of "bodily injury" and "property dam-age" included in the "products-completed op-erations hazard".

4. Subject to 2.a. above, the Personal and Ad-vertising Injury Limit is the most we will payunder COVERAGE B. PERSONAL AND AD-VERTISING INJURY LIABILITY for the sum ofall damages because of all "personal and ad-vertising injury" sustained by any one personor organization.

5. Subject to 2. or 3. above, whichever applies,the Each Occurrence Limit is the most we willpay for the sum of:

a. Damages under COVERAGE A. BODILYINJURY AND PROPERTY DAMAGE LI-ABILITY; and

b. Medical expenses under COVERAGE C.MEDICAL PAYMENTS;

because of all "bodily injury" and "propertydamage" arising out of any one "occurrence".

6. Subject to 5. above, the Damage to PremisesRented to You Limit is the most we will payunder COVERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY for dam-ages because of "property damage" to anyone premises, while rented to you, or in thecase of damage by fire or explosion, whilerented to you or temporarily occupied by youwith permission of the owner.

7. Subject to 5. above, the Medical ExpenseLimit is the most we will pay under COVER-AGE C. MEDICAL PAYMENTS for all medicalexpenses because of "bodily injury" sustainedby any one person.

The Limits of Insurance of this Coverage Part ap-ply separately to each "coverage term".

SECTION IV - COMMERCIAL GENERAL LI-ABILITY CONDITIONS

1. Bankruptcy

Bankruptcy or insolvency of the insured or ofthe insured's estate will not relieve us of ourobligations under this Coverage Part.

2. Duties in the Event of Occurrence, Offense,Claim or Suit

a. You must see to it that we are notified assoon as practicable of an "occurrence" or



a "personal and advertising injury" of-fense which may result in a claim. To theextent possible, notice should include:

(1) How, when and where the "occur-rence" or offense took place;

(2) The names and addresses of anyinjured persons and witnesses; and

(3) The nature and location of any injuryor damage arising out of the "occur-rence" or offense.

b. If a claim is made or "suit" is broughtagainst any insured, you must:

(1) Immediately record the specifics ofthe claim or "suit" and the date re-ceived; and

(2) Notify us as soon as practicable.

You must see to it that we receive writtennotice of the claim or "suit" as soon aspracticable.

c. You and any other involved insured must:

(1) Immediately send us copies of anydemands, notices, summonses orlegal papers received in connectionwith the claim or "suit";

(2) Authorize us to obtain records andother information;

(3) Cooperate with us in the investiga-tion or settlement of the claim or de-fense against the "suit"; and

(4) Assist us, upon our request, in theenforcement of any right against anyperson or organization which may beliable to the insured because of in-jury or damage to which this insur-ance may also apply.

d. No insured will, except at that insured'sown cost, voluntarily make a payment,assume any obligation, or incur any ex-pense, other than for first aid, without ourconsent.

3. Legal Action Against Us

No person or organization has a right underthis Coverage Part:

a. To join us as a party or otherwise bringus into a "suit" asking for damages froman insured; or

b. To sue us on this Coverage Part unlessall of its terms have been fully compliedwith.

A person or organization may sue us to re-cover on an agreed settlement or on a finaljudgment against an insured; but we will notbe liable for damages that are not payable

under the terms of this Coverage Part or thatare in excess of the applicable limit of insur-ance. An agreed settlement means a settle-ment and release of liability signed by us, theinsured and the claimant or the claimant's le-gal representative.

4. Liberalization

If, within 60 days prior to the beginning of thisCoverage Part or during the policy period, wemake any changes to any forms or endorse-ments of this Coverage Part for which there iscurrently no separate premium charge, andthat change provides more coverage than thisCoverage Part, the change will automaticallyapply to this Coverage Part as of the latter of:

a. The date we implemented the change inyour state; or

b. The date this Coverage Part became ef-fective; and

will be considered as included until the end ofthe current policy period. We will make noadditional premium charge for this additionalcoverage during the interim.

5. Other Insurance

If other valid and collectible insurance isavailable to the insured for a loss we coverunder COVERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY or COV-ERAGE B. PERSONAL AND ADVERTISINGINJURY LIABILITY of this Coverage Part, ourobligations are limited as follows:

a. Primary Insurance

This insurance is primary except when b.below applies. If this insurance is pri-mary, our obligations are not affectedunless any of the other insurance is alsoprimary. Then, we will share with all thatother insurance by the method describedin c. below.

b. Excess Insurance

This insurance is excess over:

(1) Any of the other insurance, whetherprimary, excess, contingent or onany other basis:

(a) That is Fire, Extended Cover-age, Builder's Risk, InstallationRisk or similar insurance for"your work";

(b) That is Fire or Explosion insur-ance for premises rented to youor temporarily occupied by youwith permission of the owner;

(c) That is insurance purchased byyou to cover your liability as atenant for "property damage" to



premises rented to you or tem-porarily occupied by you withpermission of the owner; or

(d) If the loss arises out of themaintenance or use of aircraft,"autos" or watercraft to the ex-tent not subject to SECTION I -COVERAGES, COVERAGE A.BODILY INJURY AND PROP-ERTY DAMAGE LIABILITY, 2.Exclusions, g. Aircraft, Auto orWatercraft.

(2) Any other primary insurance avail-able to the insured covering liabilityfor damages arising out of thepremises or operations, or the prod-ucts and completed operations, forwhich the insured has been addedas an additional insured by attach-ment of an endorsement.

(3) Any other insurance:

(a) Whether primary, excess, con-tingent or on any other basis,except when such insurance iswritten specifically to be excessover this insurance; and

(b) That is a consolidated (wrap-up)insurance program which hasbeen provided by the primecontractor/project manager orowner of the consolidated proj-ect in which you are involved.

When this insurance is excess, we willhave no duty under COVERAGE A.BODILY INJURY AND PROPERTYDAMAGE LIABILITY or COVERAGE B.PERSONAL AND ADVERTISING IN-JURY LIABILITY to defend the insuredagainst any "suit" if any other insurer hasa duty to defend the insured against that"suit". If no other insurer defends, we willundertake to do so, but we will be entitledto the insured's rights against all thoseother insurers.

When this insurance is excess over otherinsurance, we will pay only our share ofthe amount of the loss, if any, that ex-ceeds the sum of:

(1) The total amount that all such otherinsurance would pay for the loss inthe absence of this insurance; and

(2) The total of all deductible and self-insured amounts under all that otherinsurance.

We will share the remaining loss, if any,with any other insurance that is not de-scribed in this Excess Insurance provi-sion and was not bought specifically toapply in excess of the Limits of Insurance

shown in the Declarations of this Cover-age Part.

c. Method of Sharing

If all of the other insurance permits con-tribution by equal shares, we will followthis method also. Under this approacheach insurer contributes equal amountsuntil it has paid its applicable limit of in-surance or none of the loss remains,whichever comes first.

If any of the other insurance does notpermit contribution by equal shares, wewill contribute by limits. Under thismethod, each insurer's share is based onthe ratio of its applicable limit of insuranceto the total applicable limits of insuranceof all insurers.

6. Premium Audit

a. We will compute all premiums for thisCoverage Part in accordance with ourrules and rates.

b. Premium shown in this Coverage Part asadvance premium is a deposit premiumonly. At the close of each audit period wewill compute the earned premium for thatperiod and send notice to the first NamedInsured. The due date for audit and ret-rospective premiums is the date shownas the due date on the bill. If:

(1) The earned premium is less than thedeposit premium, we will return theexcess to the first Named Insured; or

(2) The earned premium is greater thanthe deposit premium, the differencewill be due and payable to us by thefirst Named Insured upon notice fromus.

c. The first Named Insured must keep rec-ords of the information we need for pre-mium computation, and send us copies atsuch times as we may request.

7. Representations

By accepting this Coverage Part, you agree:

a. The statements in the Declarations areaccurate and complete;

b. Those statements are based upon repre-sentations you made to us; and

c. We have issued this Coverage Part in re-liance upon your representations.

8. Separation of Insureds

Except with respect to the Limits of Insurance,and any rights or duties specifically assignedin this Coverage Part to the first Named In-sured, this insurance applies:



a. As if each Named Insured were the onlyNamed Insured; and

b. Separately to each insured against whomclaim is made or "suit" is brought.

9. Transfer of Rights of Recovery AgainstOthers to Us

If the insured has rights to recover all or partof any payment we have made under thisCoverage Part, those rights are transferred tous. The insured must do nothing after loss toimpair them. At our request, the insured willbring "suit" or transfer those rights to us andhelp us enforce them.

10. Two or More Coverage Forms or PoliciesIssued by Us

If this Coverage Part and any other CoverageForm, Coverage Part or policy issued to youby us or any company affiliated with us applyto the same "occurrence" or "personal andadvertising injury" offense, the aggregatemaximum limit of insurance under all the Cov-erage Forms, Coverage Parts or policies shallnot exceed the highest applicable limit of in-surance under any one Coverage Form, Cov-erage Part or policy. This condition does notapply to any Coverage Form, Coverage Partor policy issued by us or an affiliated companyspecifically to apply as excess insurance overthis Coverage Part.

11. When We Do Not Renew

If we decide not to renew this Coverage Part,we will mail or deliver to the first Named In-sured shown in the Declarations written noticeof the nonrenewal not less than 30 days be-fore the expiration date.

If notice is mailed, proof of mailing will be suf-ficient proof of notice.

SECTION V - DEFINITIONS

1. "Advertisement" means a notice that is broad-cast, telecast or published to the general pub-lic or specific market segments about yourgoods, products or services for the purpose ofattracting customers or supporters. "Adver-tisement" includes a publicity article. For pur-poses of this definition:

a. Notices that are published include mate-rial placed on the Internet or on similarelectronic means of communication; and

b. Regarding web-sites, only that part of aweb-site that is about your goods, prod-ucts or services for the purposes of at-tracting customers or supporters is con-sidered an "advertisement".

2. "Authorized representative" means:

a. If you are designated in the Declarationsas:

(1) An individual, you and your spouseare "authorized representatives".

(2) A partnership or joint venture, yourmembers, your partners, and theirspouses are "authorized representa-tives".

(3) A limited liability company, yourmembers and your managers are"authorized representatives".

(4) An organization other than a part-nership, joint venture or limited liabil-ity company, your "executive offi-cers" and directors are "authorizedrepresentatives". Provided you arenot a publicly traded organization,your stockholders are also "author-ized representatives".

(5) A trust, your trustees are "authorizedrepresentatives".

b. Your "employees":

(1) Assigned to manage your insuranceprogram; or

(2) Responsible for giving or receivingnotice of an "occurrence", "personaland advertising injury" offense, claimor "suit";

are also "authorized representatives".

3. "Auto" means:

a. A land motor vehicle, trailer or semitrailerdesigned for travel on public roads, in-cluding any attached machinery orequipment; or

b. Any other land vehicle that is subject to acompulsory or financial responsibility lawor other motor vehicle insurance law inthe state where it is licensed or principallygaraged.

However, "auto" does not include "mobileequipment".

4. "Bodily injury" means bodily injury, sickness ordisease sustained by a person, includingdeath resulting from any of these at any time.

5. "Coverage term" means the following individ-ual increment, or if a multi-year policy period,increments, of time, which comprise the policyperiod of this Coverage Part:

a. The year commencing on the EffectiveDate of this Coverage Part at 12:01 AMstandard time at your mailing addressshown in the Declarations, and if a multi-year policy period, each consecutive an-nual period thereafter, or portion thereof ifany period is for a period of less than 12months, constitute individual "coverageterms". The last "coverage term" ends at



12:00 AM standard time at your mailingaddress shown in the Declarations on theearlier of:


(2) The day the policy to which this Cov-erage Part is attached is terminatedor cancelled.

b. However, if after the issuance of thisCoverage Part, any "coverage term" isextended for an additional period of lessthan 12 months, that additional period oftime will be deemed to be part of the lastpreceding "coverage term".

6. "Coverage territory" means:

a. The United States of America (includingits territories and possessions), PuertoRico and Canada;

b. International waters or airspace, but onlyif the injury or damage occurs in thecourse of travel or transportation betweenany places included in a. above; or

c. All other parts of the world if the injury ordamage arises out of:

(1) Goods or products made or sold byyou in the territory described in a.above;

(2) The activities of a person whosehome is in the territory described ina. above, but is away for a short timeon your business; or

(3) "Personal and advertising injury" of-fenses that take place through theInternet or similar electronic meansof communication,

provided the insured's responsibility topay damages is determined in a "suit" onthe merits, in the territory described in a.above or in a settlement to which weagree.

7. "Electronic data" means information, facts orprograms stored as or on, created or used on,or transmitted to or from computer software,including systems and applications software,hard or floppy disks, CD-ROMs, tapes, drives,cells, data processing devices or any othermedia which are used with electronically con-trolled equipment.

8. "Employee" includes a "leased worker". "Em-ployee" does not include a "temporaryworker".

9. "Executive officer" means a person holdingany of the officer positions created by yourcharter, constitution, by-laws or any othersimilar governing document.

10. "Hostile fire" means one which becomes un-controllable or breaks out from where it wasintended to be.

11. "Impaired property" means tangible property,other than "your product" or "your work", thatcannot be used or is less useful because:

a. It incorporates "your product" or "yourwork" that is known or thought to be de-fective, deficient, inadequate or danger-ous; or

b. You have failed to fulfill the terms of acontract or agreement;

if such property can be restored to use by:

a. The repair, replacement, adjustment orremoval of "your product" or "your work";or

b. Your fulfilling the terms of the contract oragreement.

12. "Insured contract" means:

a. A contract for a lease of premises. How-ever, that portion of the contract for alease of premises that indemnifies anyperson or organization for "propertydamage" by fire or explosion to premiseswhile rented to you or temporarily occu-pied by you with permission of the owneris not an "insured contract";

b. A sidetrack agreement;

c. Any easement or license agreement, ex-cept in connection with construction ordemolition operations on or within 50 feetof a railroad;

d. An obligation, as required by ordinance,to indemnify a municipality, except inconnection with work for a municipality;

e. An elevator maintenance agreement;

f. That part of any other contract or agree-ment pertaining to your business (includ-ing an indemnification of a municipality inconnection with work performed for amunicipality) under which you assumethe tort liability of another party to pay for"bodily injury", "property damage" or"personal and advertising injury" to a thirdperson or organization. Tort liabilitymeans a liability that would be imposedby law in the absence of any contract oragreement.

Paragraph f. does not include that part ofany contract or agreement:

(1) That indemnifies a railroad for "bodilyinjury", "property damage" or "per-sonal and advertising injury" arisingout of construction or demolition op-erations, within 50 feet of any rail-



road property and affecting any rail-road bridge or trestle, tracks, road-beds, tunnel, underpass or crossing;

(2) That indemnifies an architect, engi-neer or surveyor for injury or damagearising out of:

(a) Preparing, approving, or failingto prepare or approve, maps,shop drawings, opinions, re-ports, surveys, field orders,change orders or drawings andspecifications; or

(b) Giving directions or instructions,or failing to give them, if that isthe primary cause of the injuryor damage;

(3) Under which the insured, if an archi-tect, engineer or surveyor, assumesliability for an injury or damage aris-ing out of the insured's rendering orfailure to render professional serv-ices, including those listed in Para-graph (2) above and supervisory, in-spection, architectural or engineeringactivities;

(4) That indemnifies an advertising, pub-lic relations or media consulting firmfor "personal and advertising injury"arising out of the planning, executionor failure to execute marketing com-munications programs. Marketingcommunications programs includebut are not limited to comprehensivemarketing campaigns; consumer,trade and corporate advertising forall media; media planning, buying,monitoring and analysis; direct mail;promotion; sales materials; design;presentations; point-of-sale materi-als; market research; public relationsand new product development;

(5) Under which the insured, if an adver-tising, public relations or media con-sulting firm, assumes liability for"personal and advertising injury"arising out of the insured's renderingor failure to render professionalservices, including those serviceslisted in Paragraph (4), above;

(6) That indemnifies a web-site designeror content provider, or Internetsearch, access, content or serviceprovider for injury or damage arisingout of the planning, execution or fail-ure to execute Internet services.Internet services include but are notlimited to design, production, distri-bution, maintenance and administra-tion of web-sites and web-banners;hosting web-sites; registering do-main names; registering with search

engines; marketing analysis; andproviding access to the Internet orother similar networks; or

(7) Under which the insured, if a web-site designer or content provider, orInternet search, access, content orservice provider, assumes liability forinjury or damage arising out of theinsured's rendering or failure to ren-der Internet services, including thoselisted in Paragraph (6), above.

13. "Leased worker" means a person leased toyou by a labor leasing firm under an agree-ment between you and the labor leasing firm,to perform duties related to the conduct ofyour business. "Leased worker" includes su-pervisors furnished to you by the labor leasingfirm. "Leased worker" does not include a"temporary worker".

14. "Loading or unloading" means the handling ofproperty:

a. After it is moved from the place where it isaccepted for movement into or onto anaircraft, watercraft or "auto";

b. While it is in or on an aircraft, watercraftor "auto"; or

c. While it is being moved from an aircraft,watercraft or "auto" to the place where itis finally delivered;

but "loading or unloading" does not includethe movement of property by means of a me-chanical device, other than a hand truck, thatis not attached to the aircraft, watercraft or"auto".

15. "Mobile equipment" means any of the follow-ing types of land vehicles, including any at-tached machinery or equipment:

a. Bulldozers, farm machinery, forklifts andother vehicles designed for use princi-pally off public roads;

b. Vehicles maintained for use solely on ornext to premises you own or rent;

c. Vehicles that travel on crawler treads;

d. Vehicles, whether self-propelled or not,maintained primarily to provide mobility topermanently mounted:

(1) Power cranes, shovels, loaders, dig-gers or drills; or

(2) Road construction or resurfacingequipment such as graders, scrap-ers or rollers;

e. Vehicles not described in a., b., c. or d.above that are not self-propelled and aremaintained primarily to provide mobility to



permanently attached equipment of thefollowing types:

(1) Air compressors, pumps and gen-erators, including spraying, welding,building cleaning, geophysical explo-ration, lighting and well servicingequipment; or

(2) Cherry pickers and similar devicesused to raise or lower workers;

f. Vehicles not described in a., b., c. or d.above maintained primarily for purposesother than the transportation of personsor cargo.

However, self-propelled vehicles with thefollowing types of permanently attachedequipment are not "mobile equipment"but will be considered "autos":

(1) Equipment designed primarily for:

(a) Snow removal;

(b) Road maintenance, but not con-struction or resurfacing; or

(c) Street cleaning;

(2) Cherry pickers and similar devicesmounted on automobile or truckchassis and used to raise or lowerworkers; and

(3) Air compressors, pumps and gen-erators, including spraying, welding,building cleaning, geophysical explo-ration, lighting and well servicingequipment.

However, "mobile equipment" does not in-clude any land vehicles that are subject to acompulsory or financial responsibility law orother motor vehicle insurance law in the statewhere it is licensed or principally garaged.Land vehicles subject to a compulsory or fi-nancial responsibility law or other motor vehi-cle insurance law are considered "autos".

16. "Occurrence" means an accident, includingcontinuous or repeated exposure to substan-tially the same general harmful conditions.

17. "Personal and advertising injury" means in-jury, including consequential "bodily injury",arising out of one or more of the following of-fenses:

a. False arrest, detention or imprisonment;

b. Malicious prosecution;

c. The wrongful eviction from, wrongful entryinto, or invasion of the right of private oc-cupancy of a room, dwelling or premisesthat a person occupies, committed by oron behalf of its owner, landlord or lessor;

d. Oral or written publication, in any manner,of material that slanders or libels a per-son or organization or disparages a per-son's or organization's goods, products orservices;

e. Oral or written publication, in any manner,of material that violates a person's right ofprivacy;

f. The use of another's advertising idea inyour "advertisement"; or

g. Infringing upon another's copyright, tradedress or slogan in your "advertisement".

18. "Pollutant" means any solid, liquid, gaseous orthermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals, petroleum, petroleum productsand petroleum by-products, and waste.Waste includes materials to be recycled, re-conditioned or reclaimed. "Pollutants" includebut are not limited to substances which aregenerally recognized in industry or govern-ment to be harmful or toxic to persons, prop-erty or the environment regardless of whetherthe injury or damage is caused directly or indi-rectly by the "pollutants" and whether:

a. The insured is regularly or otherwise en-gaged in activities which taint or degradethe environment; or

b. The insured uses, generates or producesthe "pollutant".

19. "Products-completed operations hazard":

a. Includes all "bodily injury" and "propertydamage" occurring away from premisesyou own or rent and arising out of "yourproduct" or "your work" except:

(1) Products that are still in your physicalpossession; or

(2) Work that has not yet been com-pleted or abandoned. However,"your work" will be deemed com-pleted at the earliest of the followingtimes:

(a) When all of the work called for inyour contract has been com-pleted; or

(b) When all of the work to be doneat the job site has been com-pleted if your contract calls forwork at more than one job site;or

(c) When that part of the work doneat a job site has been put to itsintended use by any person ororganization other than anothercontractor or subcontractorworking on the same project.



Work that may need service, main-tenance, correction, repair or re-placement, but which is otherwisecomplete, will be treated as com-pleted.

b. Does not include "bodily injury" or "prop-erty damage" arising out of:

(1) The transportation of property, un-less the injury or damage arises outof a condition in or on a vehicle notowned or operated by you, and thatcondition was created by the "load-ing or unloading" of that vehicle byany insured;

(2) The existence of tools, uninstalledequipment or abandoned or unusedmaterials; or

(3) Products or operations for which theclassification, listed in the Declara-tions or in a schedule, states thatproducts-completed operations areincluded.

20. "Property damage" means:

a. Physical injury to tangible property, in-cluding all resulting loss of use of thatproperty. All such loss of use shall bedeemed to occur at the time of the physi-cal injury that caused it; or

b. Loss of use of tangible property that isnot physically injured. All such loss ofuse shall be deemed to occur at the timeof the "occurrence" that caused it.

For the purposes of this insurance, "electronicdata" is not tangible property.

21. "Suit" means a civil proceeding in whichmoney damages because of "bodily injury","property damage" or "personal and advertis-ing injury" to which this insurance applies arealleged. "Suit" includes:

a. An arbitration proceeding in which suchdamages are claimed and to which theinsured must submit or does submit withour consent;

b. Any other alternative dispute resolutionproceeding in which such damages areclaimed and to which the insured submitswith our consent; or

c. An appeal of a civil proceeding.

22. "Temporary worker" means a person who isfurnished to you to substitute for a permanent"employee" on leave or to meet seasonal orshort-term workload conditions.

23. "Volunteer worker" means a person who isnot your "employee", and who donates his or

her work and acts at the direction of andwithin the scope of duties determined by you,and is not paid a fee, salary or other compen-sation by you or anyone else for their workperformed for you.

24. "Workplace" means that place and duringsuch hours to which the "employee" sustain-ing "bodily injury" was assigned by you, orany other person or entity acting on your be-half, to work on the date of "occurrence".

25. "Your product":

a. Means:

(1) Any goods or products, other thanreal property, manufactured, sold,handled, distributed or disposed ofby:

(a) You;

(b) Others trading under your name;or

(c) A person or organization whosebusiness or assets you haveacquired; and

(2) Containers (other than vehicles),materials, parts or equipment fur-nished in connection with suchgoods or products.

b. Includes:

(1) Warranties or representations madeat any time with respect to the fit-ness, quality, durability, performanceor use of "your product"; and

(2) The providing of or failure to providewarnings or instructions.

c. Does not include vending machines orother property rented to or located for theuse of others but not sold.

26. "Your work":

a. Means:

(1) Work or operations performed byyou or on your behalf; and

(2) Materials, parts or equipment fur-nished in connection with such workor operations.

b. Includes:

(1) Warranties or representations madeat any time with respect to the fit-ness, quality, durability, performanceor use of "your work"; and




NUCLEAR ENERGY LIABILITY EXCLUSION

(Broad Form)


A. Under any Liability Coverage, to "bodilyinjury" or "property damage":

(1) With respect to which an insured un-der this Coverage Part is also an in-sured under a nuclear energy liabilitypolicy issued by Nuclear Energy Li-ability Insurance Association, MutualAtomic Energy Liability Underwriters,Nuclear Insurance Association ofCanada, or any of their successors,or would be an insured under anysuch policy but for its terminationupon exhaustion of its limit of liability;or

(2) Resulting from the "hazardous prop-erties" of "nuclear material" and withrespect to which (a) any person ororganization is required to maintainfinancial protection pursuant to theAtomic Energy Act of 1954, or anylaw amendatory thereof, or (b) theinsured is, or had this Coverage Partnot been issued would be, entitled toindemnity from the United States ofAmerica, or any agency thereof, un-der any agreement entered into bythe United States of America, or anyagency thereof, with any person ororganization.

B. Under any Medical Payments coverage,to expenses incurred with respect to"bodily injury" resulting from the "hazard-ous properties" of "nuclear material" andarising out of the operation of a "nuclearfacility" by any person or organization.

C. Under any Liability Coverage, to "bodilyinjury" or "property damage" resultingfrom the "hazardous properties" of "nu-clear material", if:

(1) The "nuclear material" (a) is at any"nuclear facility" owned by, or oper-ated by or on behalf of, an insured,or (b) has been discharged or dis-persed therefrom;

(2) The "nuclear material" is contained in"spent fuel" or "waste" at any timepossessed, handled, used, proc-essed, stored, transported or dis-posed of, by or on behalf of an in-sured; or

(3) The "bodily injury" or "property dam-age" arises out of the furnishing by

an insured of services, materials,parts or equipment in connectionwith the planning, construction,maintenance, operation or use ofany "nuclear facility", but if such fa-cility is located within the UnitedStates of America, its territories orpossessions or Canada, this Exclu-sion (3) applies only to "propertydamage" to such "nuclear facility"and any property thereat.

2. As used in this exclusion:

"Hazardous properties" includes radioactive,toxic or explosive properties.

"Nuclear material" means "source material","special nuclear material" or "by-product ma-terial".

"Source material", "special nuclear material",and "by-product material" have the meaningsgiven them in the Atomic Energy Act of 1954or in any law amendatory thereof.

"Spent fuel" means any fuel element or fuelcomponent, solid or liquid, which has beenused or exposed to radiation in a "nuclear re-actor".

"Waste" means any waste material (a) con-taining "by-product material" other than thetailings or wastes produced by the extractionor concentration of uranium or thorium fromany ore processed primarily for its "sourcematerial" content, and (b) resulting from theoperation by any person or organization ofany "nuclear facility" included under the firsttwo paragraphs of the definition of "nuclearfacility".


A. Any "nuclear reactor";

B. Any equipment or device designed orused for (1) separating the isotopes ofuranium or plutonium, (2) processing orutilizing "spent fuel", or (3) handling,processing or packaging "waste";

C. Any equipment or device used for theprocessing, fabricating or alloying of"special nuclear material" if at any timethe total amount of such material in thecustody of the insured at the premiseswhere such equipment or device is lo-cated consists of or contains more than25 grams of plutonium or uranium 233 orany combination thereof, or more than250 grams of uranium 235;



D. Any structure, basin, excavation, prem-ises or place prepared or used for thestorage or disposal of "waste";

and includes the site on which any of theforegoing is located, all operations conductedon such site and all premises used for suchoperations.

"Nuclear reactor" means any apparatus de-signed or used to sustain nuclear fission in aself-supporting chain reaction or to contain acritical mass of fissionable material.

"Property damage" includes all forms of ra-dioactive contamination of property.


GA 4251 01 06

NOTICE TO POLICYHOLDERS - MOBILE EQUIPMENT

SUBJECT TO MOTOR VEHICLE INSURANCE LAWS

This is a notice of a change in your policy. NO COVERAGE IS PROVIDED BY THIS NOTICE nor can it beconstrued to replace any provisions of your policy. YOU SHOULD READ YOUR POLICY AND REVIEWYOUR DECLARATIONS PAGE for complete information on the coverage you are provided. If there is anyconflict between the policy and this notice, THE PROVISIONS OF THE POLICY SHALL PREVAIL.

COMMERCIAL GENERAL LIABILITY COVERAGE PART

GA 4250 Mobile Equipment Subject to Motor Vehicle Insurance Laws has been added to your policy.

This endorsement revises the definitions of "mobile equipment" and "auto" to those definitions used prior tothe introduction of Commercial General Liability Form, GA 101 12 04. This endorsement only applies if youhave no Auto Coverage Form in force or the land vehicle does not meet the definition of auto in your AutoCoverage Form.



PRODUCTS/COMPLETED OPERATIONS HAZARDREDEFINED


COMMERCIAL GENERAL LIABILITY COVERAGE PARTPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE

Description of Premises and Operations:

(If no entry appears above, information required to complete this endorsement will be shown in the Declara-tions as applicable to this endorsement.)

With respect to "bodily injury" or "property damage"arising out of "your products" manufactured, sold,handled or distributed:

1. On, from or in connection with the use of anypremises described in the Schedule, or

2. In connection with the conduct of any operationdescribed in the Schedule, when conducted byyou or on your behalf,

Paragraph a. of the definition of "Products - com-pleted operations hazard" in the DEFINITIONSSection is replaced by the following:

"Products-completed operations hazard":

a. Includes all "bodily injury" and "propertydamage" that arises out of "your products"if the "bodily injury" or "property damage"occurs after you have relinquished pos-session of those products.

CG 24 07 01 96 Copyright, Insurance Services Office, Inc., 1994

FOOD & BEVERAGE SERVICES




COMMERCIAL GENERAL LIABILITY EXTENDEDENDORSEMENT



A. Endorsement - Table of Contents:

Coverage: Begins on Page:

1. Employee Benefit Liability Coverage.......................................................................................32. Unintentional Failure To Disclose Hazards.............................................................................93. Damage To Premises Rented To You......................................................................................94. Supplementary Payments ...................................................................................................... 105. 180 Day Coverage For Newly Formed Or Acquired Organizations ................................... 106. Waiver Of Subrogation ........................................................................................................... 107. Automatic Additional Insured - Specified Relationships: .................................................. 11

• Managers Or Lessors Of Premises;• Lessor Of Leased Equipment;• Vendors;• State Or Governmental Agency Or Subdivision Or Political Subdivision - Permits

Or Authorizations Relating To Premises; and• Mortgagee, Assignee Or Receiver

8. Property Damage To Borrowed Equipment ......................................................................... 149. Employees As Insureds - Specified Health Care Services And Good Samaritan

Services ................................................................................................................................... 1510. Broadened Notice Of Occurrence ......................................................................................... 1511. Nonowned Aircraft.................................................................................................................. 1512. Bodily Injury Redefined.......................................................................................................... 1513. Expected Or Intended Injury Redefined ............................................................................... 1514. Former Employees As Insureds............................................................................................ 15

B. Limits Of Insurance:

The Commercial General Liability Limits of Insurance apply to the insurance provided by this endorse-ment, except as provided below:

1. Employee Benefit Liability Coverage

Each Employee Limit: $1,000,000Aggregate Limit: $3,000,000Deductible Amount: $ 1,000

3. Damage To Premises Rented To You

The lesser of:

a. The Each Occurrence Limit shown in the Declarations; or

b. $500,000 unless otherwise stated $

4. Supplementary Payments

a. Bail Bonds: $2,500

b. Loss Of Earnings: $ 500



8. Property Damage To Borrowed Equipment

Each Occurrence Limit: $10,000Deductible Amount: $ 250



C. Coverages

1. Employee Benefit Liability Coverage

a. The following is added to Section I -Coverages:

Employee Benefit Liability Cover-age

(1) Insuring Agreement

(a) We will pay those sums thatthe insured becomes legally obligated to pay as damag-es caused by any act, error or omission of the insured,or of any other person forwhose acts the insured islegally liable, to which thisinsurance applies. We will have the right and duty todefend the insured againstany "suit" seeking thosedamages. However, we will have no duty to defend against any "suit" seekingdamages to which this in-surance does not apply. We may, at our discretion, in-vestigate any report of an act, error or omission andsettle any claim or "suit" thatmay result. But:

1) The amount we will pay for damages is limitedas described in SectionIII - Limits Of Insur-ance; and

2) Our right and duty to defend ends when we have used up the appli-cable limit of insurancein the payment of judg-ments or settlements.

No other obligation or liabil-ity to pay sums or perform acts or services is coveredunless explicitly provided forunder SupplementaryPayments.

(b) This insurance applies todamages only if the act, er-ror or omission, is negligent-ly committed in the "admin-istration" of your "employee benefit program"; and

1) Occurs during the policy period; or

2) Occurred prior to the "first effective date" ofthis endorsement pro-vided:

a) You did not have knowledge of a claim or "suit" on orbefore the "first ef-fective date" of thisendorsement.

You will bedeemed to have knowledge of aclaim or "suit"when any "author-ized representa-tive";

i) Reports all, or any part, of theact, error oromission to usor any other insurer;

ii) Receives awritten or ver-bal demand or claim for dam-ages becauseof the act, er-ror or omis-sion; and

b) There is no other applicable insur-ance.

(2) Exclusions


(a) Bodily Injury, Property Damage Or Personal AndAdvertising Injury

"Bodily injury", "property damage" or "personal and advertising injury".

(b) Dishonest, Fraudulent,Criminal Or Malicious Act

Damages arising out of anyintentional, dishonest,fraudulent, criminal or mali-cious act, error or omission,committed by any insured,including the willful or reck-less violation of any statute.



(c) Failure To Perform A Con-tract

Damages arising out of fail-ure of performance of con-tract by any insurer.

(d) Insufficiency Of Funds

Damages arising out of aninsufficiency of funds tomeet any obligations underany plan included in the"employee benefit program".

(e) Inadequacy Of Perfor-mance Of Invest-ment/Advice Given With Respect To Participation

Any claim based upon:

1) Failure of any invest-ment to perform;

2) Errors in providing in-formation on past per-formance of investment vehicles; or

3) Advice given to any person with respect tothat person's decision to participate or not to par-ticipate in any plan in-cluded in the "employeebenefit program".

(f) Workers' CompensationAnd Similar Laws

Any claim arising out of yourfailure to comply with themandatory provisions of anyworkers' compensation, un-employment compensationinsurance, social security ordisability benefits law or anysimilar law.

(g) ERISA

Damages for which any in-sured is liable because of li-ability imposed on a fiduci-ary by the Employee Re-tirement Income Security Act of 1974, as now orhereafter amended, or byany similar federal, state orlocal laws.

(h) Available Benefits

Any claim for benefits to theextent that such benefits are available, with reasonable

effort and cooperation of theinsured, from the applicablefunds accrued or other col-lectible insurance.

(i) Taxes, Fines Or Penalties

Taxes, fines or penalties, in-cluding those imposed un-der the Internal RevenueCode or any similar state orlocal law.

(j) Employment-Related Prac-tices

Any liability arising out of any:

(1) Refusal to employ;

(2) Termination of employ-ment;

(3) Coercion, demotion, evaluation, reassign-ment, discipline, defa-mation, harassment, humiliation, discrimina-tion or other employ-ment - related practices,acts or omissions; or

(4) Consequential liabilityas a result of (1), (2) or(3) above.

This exclusion applieswhether the insured may beheld liable as an employer or in any other capacity and to any obligation to share damages with or repaysomeone else who must paydamages because of the in-jury.

(3) Supplementary Payments

Section I - Coverages, Sup-plementary Payments - Cover-ages A And B also apply to thisCoverage.

b. Who Is An Insured

As respects Employee Benefit Lia-bility Coverage, Section II - Who Is An Insured is replaced by the follow-ing:

(1) If you are designated in the Dec-larations as:

(a) An individual, you and yourspouse are insureds, but on-ly with respect to the con-



duct of a business of whichyou are the sole owner.

(b) A partnership or joint ven-ture, you are an insured. Your members, your part-ners, and their spouses arealso insureds but only with respect to the conduct of your business.

(c) A limited liability company,you are an insured. Your members are also insureds,but only with respect to the conduct of your business. Your managers are in-sureds, but only with respectto their duties as your man-agers.

(d) An organization other than apartnership, joint venture orlimited liability company, you are an insured. Your "execu-tive officers" and directorsare insureds, but only withrespect to their duties asyour officers or directors. Your stockholders are also insureds, but only with re-spect to their liability asstockholders.

(e) A trust, you are an insured. Your trustees are also in-sureds, but only with respectto their duties as trustees.

(2) Each of the following is also aninsured:

(a) Each of your "employees"who is or was authorized toadminister your "employeebenefit program";

(b) Any persons, organizations or "employees" having prop-er temporary authorizationto administer your "employ-ee benefit program" if you die, but only until your legalrepresentative is appointed; or

(c) Your legal representative ifyou die, but only with re-spect to duties as such. That representative will have allyour rights and duties underthis Coverage Part.

(3) Any organization you newly ac-quire or form, other than a part-nership, joint venture or limited

liability company, and over whichyou maintain ownership or major-ity interest, will qualify as aNamed Insured if no other similar insurance applies to that organi-zation. However, coverage underthis provision:

(a) Is afforded only until the180th day after you acquire or form the organization or the end of the policy period,whichever is earlier; and

(b) Does not apply to any act,error or omission that wascommitted before you ac-quired or formed the organi-zation.

c. Limits Of Insurance

As respects Employee Benefit Lia-bility Coverage, Section III - LimitsOf Insurance is replaced by the fol-lowing:

(1) The Limits of Insurance shown inSection B. Limits Of Insurance,1. Employee Benefit Liability Coverage and the rules below fixthe most we will pay regardlessof the number of:

(a) Insureds;

(b) Claims made or "suits"brought;

(c) Persons or organizationsmaking claims or bringing"suits";

(d) Acts, errors or omissions; or

(e) Benefits included in your"employee benefit program".

(2) The Aggregate Limit shown inSection B. Limits Of Insurance, 1. Employee Benefit Liability Coverage of this endorsement is the most we will pay for all dam-ages because of acts, errors or omissions negligently committed in the "administration" of your"employee benefit program".

(3) Subject to the limit described in(2) above, the Each EmployeeLimit shown in Section B. LimitsOf Insurance, 1. EmployeeBenefit Liability Coverage ofthis endorsement is the most wewill pay for all damages sus-tained by any one "employee", including damages sustained by



such "employee's" dependentsand beneficiaries, as a result of:

(a) An act, error or omission; or

(b) A series of related acts, er-rors or omissions, regard-less of the amount of timethat lapses between suchacts, errors or omissions;

negligently committed in the"administration" of your "employ-ee benefit program".

However, the amount paid underthis endorsement shall not ex-ceed, and will be subject to thelimits and restrictions that apply to the payment of benefits in anyplan included in the "employeebenefit program."

(4) Deductible Amount

(a) Our obligation to pay dam-ages on behalf of the in-sured applies only to theamount of damages in ex-cess of the DeductibleAmount stated in the Decla-rations as applicable toEach Employee. The limitsof insurance shall not be re-duced by the amount of thisdeductible.

(b) The Deductible Amount stated in the Declarationsapplies to all damages sus-tained by any one "employ-ee", including such "employ-ee's" dependents and bene-ficiaries, because of all acts, errors or omissions to whichthis insurance applies.

(c) The terms of this insurance, including those with respectto:

1) Our right and duty todefend the insured against any "suits"seeking those damag-es; and

2) Your duties, and the du-ties of any other in-volved insured, in the event of an act, error or omission, or claim;

apply irrespective of the ap-plication of the Deductible Amount.

(d) We may pay any part or allof the Deductible Amount to effect settlement of any claim or "suit" and, upon no-tification of the action taken,you shall promptly reim-burse us for such part of theDeductible Amount as wehave paid.

d. Additional Conditions

As respects Employee Benefit Lia-bility Coverage, Section IV - Com-mercial General Liability Condi-tions is amended as follows:

(1) Item 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit is replaced by the following:

2. Duties In The Event Of AnAct, Error Or Omission, Or Claim Or Suit

a. You must see to it that we are notified as soon as practicable of an act, error or omission whichmay result in a claim.To the extent possible,notice should include:

(1) What the act, error or omission wasand when it oc-curred; and

(2) The names and addresses of any-one who may suf-fer damages as a result of the act, error or omission.

b. If a claim is made or "suit" is brought againstany insured, you must:

(1) Immediately recordthe specifics of the claim or "suit" and the date received; and


You must see to it that we receive written no-tice of the claim or "suit"as soon as practicable.

c. You and any other in-volved insured must:



(1) Immediately send us copies of any demands, notices, summonses or le-gal papers re-ceived in connec-tion with the claim or "suit";

(2) Authorize us to ob-tain records and other information;

(3) Cooperate with usin the investigationor settlement of theclaim or defense against the "suit"; and

(4) Assist us, upon our request, in the en-forcement of any right against any person or organi-zation which may be liable to the in-sured because of an act, error or omission to which this insurance may also apply.

d. No insured will, exceptat that insured's owncost, voluntarily make a payment, assume anyobligation, or incur anyexpense without our consent.

(2) Item 5. Other Insurance is re-placed by the following:

5. Other Insurance

If other valid and collectible insurance is available to theinsured for a loss we coverunder this Coverage Part, our obligations are limited asfollows:


This insurance is prima-ry except when c. below applies. If this insuranceis primary, our obliga-tions are not affected unless any of the other insurance is also prima-ry. Then, we will sharewith all that other insur-ance by the method de-scribed in b. below.

b. Method Of Sharing

If all of the other insur-ance permits contribu-tion by equal shares, we will follow this meth-od also. Under this ap-proach each insurer contributes equalamounts until it haspaid its applicable limit of insurance or none of the loss remains, whichever comes first.

If any of the other in-surance does not permit contribution by equal shares, we will contrib-ute by limits. Under thismethod, each insurer'sshare is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insur-ers.

c. No Coverage

This insurance shall not cover any loss for which the insured is entitled to recovery under any other insurance in force previous to the effective date of this Coverage Part.

e. Additional Definitions

As respects Employee Benefit Lia-bility Coverage, Section V - Defini-tions is amended as follows:

(1) The following definitions areadded:

1. "Administration" means:

a. Providing information to "employees", includingtheir dependents and beneficiaries, with re-spect to eligibility for or scope of "employee benefit programs";

b. Interpreting the "em-ployee benefit pro-grams";

c. Handling records in connection with the "employee benefit pro-grams"; or



d. Effecting, continuing or terminating any "em-ployee's" participation inany benefit included in the "employee benefitprogram".

However, "administration"does not include:

a. Handling payroll deduc-tions; or

b. The failure to effect or maintain any insuranceor adequate limits of coverage of insurance,including but not limited to unemployment insur-ance, social security benefits, workers' com-pensation and disability benefits.

2. "Cafeteria plans" meansplans authorized by applica-ble law to allow "employees"to elect to pay for certainbenefits with pre-tax dollars.

3. "Employee benefit pro-grams" means a program providing some of all of thefollowing benefits to "em-ployees", whether provided through a "cafeteria plan" or otherwise:

a. Group life insurance; group accident or health insurance; dental, vision and hearing plans; and flexible spending ac-counts; provided that no one other than an "em-ployee" may subscribeto such benefits and such benefits are made generally available tothose "employees" whosatisfy the plan's eligibil-ity requirements;

b. Profit sharing plans, employee savingsplans, employee stock ownership plans, pen-sion plans and stock subscription plans, pro-vided that no one other than an "employee"may subscribe to such benefits and such bene-fits are made generally available to all "employ-

ees" who are eligibleunder the plan for such benefits;

c. Unemployment insur-ance, social security benefits, workers' com-pensation and disability benefits; and

d. Vacation plans, includ-ing buy and sell pro-grams; leave of ab-sence programs, includ-ing military, maternity, family, and civil leave; tuition assistance plans; transportation and health club subsidies.

4. "First effective date" meansthe date upon which cover-age was first effected in aseries of uninterrupted re-newals of insurance cover-age.

(2) The following definitions are de-leted in their entirety and re-placed by the following:

8. "Employee" means a personactively employed, formerlyemployed, on leave of ab-sence or disabled, or retired. "Employee" includes a "leased worker". "Employee"does not include a "tempo-rary worker".

21. "Suit" means a civil proceed-ing in which money damag-es because of an act, erroror omission to which this in-surance applies are alleged. "Suit" includes:

a. An arbitration proceed-ing in which such dam-ages are claimed and to which the insured mustsubmit or does submit with our consent;

b. Any other alternative dispute resolution pro-ceeding in which such damages are claimed and to which the in-sured submits with ourconsent; or

c. An appeal of a civil pro-ceeding.



2. Unintentional Failure To Disclose Haz-ards

Section IV - Commercial General Liabil-ity Conditions, 7. Representations isamended by the addition of the following:

Based on our dependence upon your rep-resentations as to existing hazards, if un-intentionally you should fail to disclose all such hazards at the inception date of your policy, we will not reject coverage under this Coverage Part based solely on suchfailure.

3. Damage To Premises Rented To You

a. The last Paragraph of 2. Exclusionsunder Section I - Coverage A - Bod-ily Injury And Property Damage Li-ability is replaced by the following:

Exclusions c. through q. do not applyto "property damage" by fire, explo-sion, lightning, smoke or soot topremises while rented to you or tem-porarily occupied by you with permis-sion of the owner, for which theamount we will pay is limited to theDamage To Premises Rented To You Limit as described in Section III- Limits Of Insurance.

b. The insurance provided under Sec-tion I - Coverage A - Bodily InjuryAnd Property Damage Liability ap-plies to "property damage" arising outof water damage to premises that are both rented to and occupied by you.

(1) As respects Water Damage Le-gal Liability, as provided in Para-graph 3.b. above:

The exclusions under Section I -Coverage A - Bodily Injury AndProperty Damage Liability, 2.Exclusions, other than i. Warand the Nuclear Energy Liabil-ity Exclusion (Broad Form), aredeleted and the following are added:


(a) "Property damage":

(i) Assumed in any con-tract or agreement; or

(ii) Caused by or resultingfrom any of the follow-ing:

1) Wear and tear;

2) Rust or other cor-rosion, decay, de-terioration, hidden or latent defect or any quality in property that caus-es it to damage or destroy itself;

3) Smog;

4) Mechanical break-down, includingrupture or bursting caused by centrif-ugal force;

5) Settling, cracking,shrinking or ex-pansion;

6) Nesting or infesta-tion, or dischargeor release of waste products or secre-tions, by insects, birds, rodents or other animals; or

7) Presence, growth, proliferation, spread or any ac-tivity of fungus, in-cluding mold or mildew, and any mycotoxins, spores, scents orbyproducts pro-duced or released by fungi.

(b) "Property damage" caused directly or indirectly by anyof the following:

(i) Earthquake, volcaniceruption, landslide or any other earth move-ment;

(ii) Water that backs up or overflows or is other-wise discharged from a sewer, drain, sump, sump pump or related equipment;

(iii) Water under the ground surface pressing on, or flowing or seepingthrough:

1) Foundations, walls, floors or paved surfaces;



2) Basements,whether paved or not; or

3) Doors, windows orother openings.

(c) "Property damage" caused by or resulting from water that leaks or flows from plumbing, heating, air condi-tioning, fire protection sys-tems, or other equipment,caused by or resulting from freezing, unless:

(i) You did your best to maintain heat in thebuilding or structure; or

(ii) You drained the equip-ment and shut off the water supply if the heat was not maintained.

(d) "Property damage" to:

(i) Plumbing, heating, air conditioning, fire protec-tion systems, or otherequipment or applianc-es; or

(ii) The interior of any building or structure, or to personal property inthe building or structure,caused by or resultingfrom rain, snow, sleet or ice, whether driven by wind or not.

c. Limit Of Insurance

With respect to the insurance afford-ed in Paragraphs 3.a. and 3.b. above,the Damage To Premises Rented To You Limit as shown in the Decla-rations is amended as follows:

(1) Paragraph 6. of Section III -Limits Of Insurance is replacedby the following:

6. Subject to Paragraph 5.above, the Damage ToPremises Rented To YouLimit is the most we will payunder Coverage A - BodilyInjury And Property Dam-age Liability for damages because of "property dam-age" to any one premises:

a. While rented to you, ortemporarily occupied by

you with permission ofthe owner;

b. In the case of damageby fire, explosion, light-ning, smoke or soot,while rented to you; or

c. In the case of damageby water, while rentedto and occupied by you.

(2) The most we will pay is limited asdescribed in Section B. LimitsOf Insurance, 3. Damage To Premises Rented To You of thisendorsement.

4. Supplementary Payments

Under Section I - Supplementary Pay-ments - Coverages A And B:

a. Paragraph 2. is replaced by the fol-lowing:

Up to the limit shown in Section B.Limits Of Insurance, 4.a. Bail Bondsof this endorsement for cost of bailbonds required because of accidentsor traffic law violations arising out ofthe use of any vehicle to which theBodily Injury Liability Coverage ap-plies. We do not have to furnish thesebonds.

b. Paragraph 4. is replaced by the fol-lowing:

All reasonable expenses incurred by the insured at our request to assist usin the investigation or defense of theclaim or "suit", including actual loss ofearnings up to the limit shown in Sec-tion B. Limits Of Insurance, 4.b.Loss Of Earnings of this endorsement per day because of time off fromwork.

5. 180 Day Coverage For Newly FormedOr Acquired Organizations

Section II - Who Is An Insured isamended as follows:

Subparagraph a. of Paragraph 3. is re-placed by the following:

a. Insurance under this provision is af-forded only until the 180th day after you acquire or form the organizationor the end of the policy period,whichever is earlier;

6. Waiver Of Subrogation

Section IV - Commercial General Liabil-ity Conditions, 9. Transfer Of Rights Of



Recovery Against Others To Us isamended by the addition of the following:

We waive any right of recovery we may have against any person or organizationagainst whom you have agreed to waivesuch right of recovery in a written contract or agreement because of payments we make for injury or damage arising out ofyour ongoing operations or "your work"done under a written contract or agree-ment with that person or organization andincluded in the "products-completed oper-ations hazard". However, our rights may only be waived prior to the "occurrence"giving rise to the injury or damage for which we make payment under this Cov-erage Part. The insured must do nothingafter a loss to impair our rights. At our re-quest, the insured will bring "suit" or trans-fer those rights to us and help us enforce those rights.

7. Automatic Additional Insured - Speci-fied Relationships

a. The following is added to Section II -Who Is An Insured:

(1) Any person(s) or organization(s)described in Paragraph 7.a.(2) of this endorsement (hereinafter re-ferred to as additional insured) whom you are required to add asan additional insured under thisCoverage Part by reason of a written contract, written agree-ment, written permit or written authorization.

(2) Only the following persons or or-ganizations are additional in-sureds under this endorsement, and insurance coverage providedto such additional insureds is lim-ited as provided herein:

(a) Managers Or Lessors OfPremises

The manager or lessor of apremises leased to you withwhom you have agreed perParagraph 7.a.(1) of this en-dorsement to provide insur-ance, but only with respectto liability arising out of the ownership, maintenance oruse of that part of the prem-ises leased to you, subjectto the following additionalexclusions:

This insurance does not ap-ply to:

(i) Any "occurrence" whichtakes place after you cease to be a tenant in that premises;

(ii) Structural alterations, new construction or demolition operationsperformed by or on be-half of such additionalinsured.

(b) Lessor Of Leased Equip-ment

Any person or organizationfrom whom you lease equipment when you andsuch person(s) or organiza-tion(s) have agreed per Par-agraph 7.a.(1) of this en-dorsement to provide insur-ance. Such person(s) or or-ganization(s) are insuredsonly with respect to liability for "bodily injury", "propertydamage" or "personal and advertising injury" caused, inwhole or in part, by yourmaintenance, operation oruse of equipment leased toyou by such person(s) or or-ganization(s). A person's or organization's status as an additional insured under thisendorsement ends when their contract or agreementwith you for such leasedequipment ends. However, this insurance does not ap-ply to any "occurrence"which takes place after theequipment lease expires.

(c) Vendors

Any person or organization(referred to below as ven-dor) with whom you haveagreed per Paragraph 7.a.(1) of this endorsement to provide insurance, but on-ly with respect to "bodily in-jury" or "property damage"arising out of "your products"which are distributed or sold in the regular course of the vendor's business, subjectto the following additionalexclusions:

(i) The insurance afforded the vendor does not apply to:



1) "Bodily injury" or"property damage"for which the ven-dor is obligated topay damages by reason of the as-sumption of liability in a contract oragreement. Thisexclusion does not apply to liability for damages that thevendor would have in the absence ofthe contract or agreement;

2) Any express war-ranty unauthorizedby you;

3) Any physical or chemical change in the product made intentionally by thevendor;

4) Repackaging, ex-cept when un-packed solely for the purpose of in-spection, demon-stration, testing, or the substitution of parts under in-structions from the manufacturer, and then repackaged inthe original con-tainer;

5) Any failure to make such inspections,adjustments, testsor servicing as the vendor has agreed to make or normal-ly undertakes to make in the usual course of busi-ness, in connectionwith the distribution or sale of the products;

6) Demonstration, in-stallation, servicingor repair opera-tions, except such operations per-formed at the ven-dor's premises in connection with thesale of the product;

7) Products which, af-ter distribution or sale by you, have been labeled or re-labeled or used asa container, part or ingredient of anyother thing or sub-stance by or for the vendor; or

8) "Bodily injury" or"property damage"arising out of the sole negligence ofthe vendor for itsown acts or omis-sions or those of its employees or anyone else actingon its behalf. How-ever, this exclusiondoes not apply to:

a) The excep-tions containedin Paragraphs(c) (i) 4) or 6)of this en-dorsement; or

b) Such inspec-tions, adjust-ments, tests orservicing asthe vendor hasagreed to make or nor-mally under-takes to make in the usual course of business, in connection with the distri-bution or sale of the prod-ucts.

(ii) This insurance does not apply to any insuredperson or organization:

1) From whom you have acquired such products, or any ingredient, part or container, enter-ing into, accompa-nying or containingsuch products; or

2) When liability in-cluded within the "products-



completed opera-tions hazard" hasbeen excluded un-der this CoveragePart with respect to such products.

(d) State Or Governmental Agency Or Subdivision OrPolitical Subdivision -Permits Or Authorizations Relating To Premises

Any state or governmentalagency or subdivision or po-litical subdivision with whichyou have agreed per Para-graph 7.a.(1) of this en-dorsement to provide insur-ance, subject to the follow-ing additional provision:

This insurance applies only with respect to the followinghazards for which the stateor governmental agency or subdivision or political sub-division has issued a permitor authorization in connec-tion with premises you own,rent or control and to whichthis insurance applies:

(i) The existence, mainte-nance, repair, construc-tion, erection or removal of advertising signs,awnings, canopies, cel-lar entrances, coalholes, driveways, man-holes, marquees, hoist away openings, side-walk vaults, street ban-ners or decorations andsimilar exposures; or

(ii) The construction, erec-tion or removal of eleva-tors; or

(iii) The ownership, mainte-nance or use of any el-evators covered by thisinsurance.

(e) Mortgagee, Assignee Or Receiver

Any person or organizationwith whom you have agreed per Paragraph 7.a.(1) of thisendorsement to provide in-surance, but only with re-spect to their liability asmortgagee, assignee, or re-

ceiver and arising out of the ownership, maintenance, or use of the premises by you.However, this insurance does not apply to structuralalterations, new constructionand demolition operations performed by or for that per-son or organization.

(3) The insurance afforded to addi-tional insureds described in Par-agraph 7.a.(1) of this endorse-ment:

(a) Only applies to the extent permitted by law; and

(b) Will not be broader than thatwhich you are required bythe written contract, writtenagreement, written permit or written authorization to pro-vide for such additional in-sured; and

(c) Does not apply to any per-son, organization, vendor, state, governmental agencyor subdivision or politicalsubdivision, specifically named as an additional in-sured under any other provi-sion of, or endorsementadded to, this CoveragePart, provided such other provision or endorsement covers the injury or damagefor which this insurance ap-plies.

b. With respect to the insurance afford-ed to the additional insureds de-scribed in Paragraph 7.a.(1) of this endorsement, the following is addedto Section III - Limits Of Insurance:

The most we will pay on behalf of the additional insured is the amount of in-surance:

(1) Required by the written contract,written agreement, written permit or written authorization described in Paragraph 7.a.(1) of this en-dorsement; or

(2) Available under the applicable Limits of Insurance shown in the Declarations;

whichever is less.

This endorsement shall not increasethe applicable Limits of Insuranceshown in the Declarations.



c. Section IV - Commercial General Liability Conditions is amended to include the following:

Automatic Additional Insured Pro-vision

This insurance applies only if the "bodily injury" or "property damage"occurs, or the "personal and advertis-ing injury" offense is committed:

(1) During the policy period; and

(2) Subsequent to your execution ofthe written contract or writtenagreement, or the issuance of awritten permit or written authori-zation, described in Paragraph7.a.(1).

d. Section IV - Commercial General Liability Conditions is amended asfollows:

Condition 5. Other Insurance isamended to include:

Primary And Noncontributory In-surance

This insurance is primary to and willnot seek contribution from any otherinsurance available to an additionalinsured per Paragraph 7.a.(1) of this endorsement provided that:

(1) The additional insured is aNamed Insured under such otherinsurance; and

(2) You have agreed in writing in acontract, agreement, permit or authorization described in 7.a.(2)of this endorsement that this in-surance would be primary andwould not seek contribution from any other insurance available to the additional insured.

8. Property Damage To Borrowed Equip-ment

a. The following is added to Exclusion2.j. Damage To Property under Sec-tion I - Coverage A - Bodily Injury And Property Damage Liability:

Paragraphs (3) and (4) of this exclu-sion do not apply to tools or equip-ment loaned to you, provided they arenot being used to perform operationsat the time of loss.

b. With respect to the insurance provid-ed by this section of the endorse-

ment, the following additional provi-sions apply:

(1) The Limits of Insurance shown inthe Declarations are replaced bythe limits designated in SectionB. Limits Of Insurance, 8.Property Damage To Borrowed Equipment of this endorsement with respect to coverage provid-ed by this endorsement. These limits are inclusive of and not inaddition to the limits being re-placed. The Limits of Insuranceshown in Section B. Limits OfInsurance, 8. Property DamageTo Borrowed Equipment of this endorsement fix the most we willpay in any one "occurrence" re-gardless of the number of:

(a) Insureds;

(b) Claims made or "suits"brought; or

(c) Persons or organizationsmaking claims or bringing"suits".

(2) Deductible Clause

(a) Our obligation to pay dam-ages on your behalf appliesonly to the amount of dam-ages for each "occurrence"which are in excess of the Deductible Amount stated in Section B. Limits Of Insur-ance, 8. Property Damage To Borrowed Equipment of this endorsement. The limitsof insurance will not be re-duced by the application ofsuch deductible amount.

(b) Section IV - CommercialGeneral Liability Condi-tions, 2. Duties In The Event Of Occurrence, Of-fense, Claim Or Suit, ap-plies to each claim or "suit"irrespective of the amount.

(c) We may pay any part or allof the deductible amount toeffect settlement of any claim or "suit" and, upon no-tification of the action taken,you shall promptly reim-burse us for such part of thedeductible amount as has been paid by us.



9. Employees As Insureds - SpecifiedHealth Care Services And Good Samar-itan Services

Paragraph 2.a.(1)(d) under Section II -Who Is An Insured does not apply to:

a. Your "employees" who provide pro-fessional health care services on yourbehalf as a duly licensed nurse, emergency medical technician or paramedic in the jurisdiction where an"occurrence" or offense to which thisinsurance applies takes place; or

b. Your "employees" or "volunteer work-ers", other than an employed or vol-unteer doctor, providing first aid or good samaritan services during theirwork hours for you will be deemed tobe acting within the scope of their employment by you or performing du-ties related to the conduct of yourbusiness.

10. Broadened Notice Of Occurrence

Paragraph a. of Condition 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit under Section IV - Com-mercial General Liability Conditions isreplaced by the following:

a. You must see to it that we are notified as soon as practicable of an "occur-rence" or an offense which may result in a claim. To the extent possible, no-tice should include:

(1) How, when and where the "oc-currence" or offense took place;

(2) The names and addresses of any injured persons and wit-nesses; and

(3) The nature and location of any injury or damage arising out of the "occurrence" or offense.

This requirement applies only whenthe "occurrence" or offense is knownto an "authorized representative".

11. Nonowned Aircraft

The following is added to Exclusion 2.g.Aircraft, Auto Or Watercraft under Sec-tion I - Coverage A - Bodily Injury AndProperty Damage Liability:

This exclusion does not apply to an air-craft you do not own, provided that:

a. The pilot in command holds a current effective certificate, issued by a duly constituted authority of the United States of America or Canada, desig-nating that person as a commercial or airline transport pilot;

b. The aircraft is rented with a trained, paid crew; and

c. The aircraft does not transport per-sons or cargo for a charge.

12. Bodily Injury Redefined

Section V - Definitions, 4. "Bodily injury"is replaced by the following:

4. "Bodily injury" means bodily harm or injury, sickness, disease, disability,humiliation, shock, fright, mental an-guish or mental injury, including care,loss of services or death resultingfrom any of these at any time.

13. Expected Or Intended Injury Redefined

The last sentence of Exclusion 2.a. Ex-pected Or Intended Injury under Sec-tion I - Coverage A - Bodily Injury AndProperty Damage Liability is replaced by the following:

This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect per-sons or property.

14. Former Employees As Insureds

The following is added to Paragraph 2.under Section II - Who Is An Insured:

2. Each of the following is also an in-sured:

Any of your former "employees", di-rectors, managers, members, part-ners or "executive officers", includingbut not limited to retired, disabled or those on leave of absence, but only for acts within the scope of their em-ployment by you or for duties relatedto the conduct of your business.


Includes copyrighted material of InsuranceGA 3024 05 14 Services Office, Inc., with its permission.


EXCLUSION - ACCESS OR DISCLOSURE OFCONFIDENTIAL OR PERSONAL INFORMATION AND

DATA-RELATED LIABILITY - WITHLIMITED BODILY INJURY EXCEPTION



A. Exclusion 2.s. of Section I - Coverage A -Bodily Injury and Property Damage Liabilityis replaced by the following:

2. Exclusions


s. Access or Disclosure of Confiden-tial or Personal Information and Data-Related Liability

Damages arising out of:

(1) Any access to or disclosure ofany person's or organization'sconfidential or personal informa-tion, including patents, trade se-crets, processing methods, cus-tomer lists, financial information, credit card information, health in-formation or any other type ofnonpublic information; or

(2) The loss of, loss of use of, dam-age to, corruption of, inability toaccess, or inability to manipulate electronic data.

This exclusion applies even if dam-ages are claimed for notification costs, credit monitoring expenses, fo-rensic expenses, public relations ex-penses or any other loss, cost or ex-pense incurred by you or others aris-

ing out of that which is described in Paragraph (1) or (2) above.

However, unless Paragraph (1)above applies, this exclusion doesnot apply to damages because of"bodily injury".

B. The following is added to Paragraph 2. Exclu-sions of Section I - Coverage B - Personal and Advertising Injury Liability:

2. Exclusions


Access or Disclosure of Confidential or Personal Information

"Personal and advertising injury" arising out of any access to or disclosure of anyperson's or organization's confidential orpersonal information, including patents,trade secrets, processing methods, cus-tomer lists, financial information, credit card information, health information or anyother type of nonpublic information.

This exclusion applies even if damagesare claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by you or others arising out of any access to or dis-closure of any person's or organization'sconfidential or personal information.


Includes copyrighted material of InsuranceGA 4205 IL 10 01 Services Office, Inc., with its permission. Page 1 of 2


ILLINOIS CHANGES - KNOWN INJURY OR DAMAGE



A. Paragraph d. of SECTION I - COVERAGES,COVERAGE A. BODILY INJURY ANDPROPERTY DAMAGE LIABILITY, 1. Insur-ing Agreement is deleted in its entirety andreplaced by the following:

d. You will be deemed to know that "bodilyinjury" or "property damage" has oc-curred at the earliest time when any"authorized representative":



(3) First observes the "bodily injury" or"property damage";

(4) Becomes aware by any means otherthan as described in (3) above, that"bodily injury" or "property damage"had occurred or had begun to occur;or

(5) Becomes aware of a condition fromwhich "bodily injury" or "propertydamage" was substantially certain tooccur.

B. SECTION I - COVERAGES, COVERAGE A.BODILY INJURY AND PROPERTY DAMAGELIABILITY, 2. Exclusions, r. Additional In-sured Prior Knowledge is deleted in its en-tirety and replaced by the following:

r. Additional Insured Prior Knowledge

An additional insured added by attach-ment of an endorsement to this CoveragePart that is seeking coverage for a claimor "suit", if that additional insured knew,per the following paragraph, that "bodilyinjury" or "property damage" had oc-curred or had begun to occur, in whole orin part, prior to the "coverage term" inwhich such "bodily injury" or "propertydamage" occurs or begins to occur.

An additional insured added by attach-ment of an endorsement to this CoveragePart will be deemed to have known that"bodily injury" or "property damage" hasoccurred or has begun to occur at theearliest time when that additional insured,or any one of its owners, members, part-

ners, managers, executive officers, "em-ployees" assigned to manage that addi-tional insured's insurance program, or"employees" assigned to give or receivenotice of an "occurrence", "personal andadvertising injury" offense, claim or "suit":



(3) First observes the "bodily injury" or"property damage";

(4) Becomes aware by any means otherthan as described in (3) above, that"bodily injury" or "property damage"had occurred or had begun to occur;or

(5) Becomes aware of a condition fromwhich "bodily injury" or "propertydamage" was substantially certain tooccur.

C. COVERAGE B. PERSONAL AND ADVER-TISING INJURY LIABILITY, 1. InsuringAgreement is deleted in its entirety and re-placed by the following:


a. We will pay those sums that the in-sured becomes legally obligated topay as damages because of "per-sonal and advertising injury" to whichthis insurance applies. We will havethe right and duty to defend the in-sured against any "suit" seekingthose damages. However, we willhave no duty to defend the insuredagainst any "suit" seeking damagesfor "personal and advertising injury"to which this insurance does not ap-ply. We may, at our discretion, in-vestigate any offense and settle anyclaim or "suit" that may result. But:

(1) The amount we will pay fordamages is limited as describedin SECTION III - LIMITS OF IN-SURANCE; and

(2) Our right and duty to defendends when we have used up theapplicable limit of insurance inthe payment of judgments orsettlements under SECTION I -


Includes copyrighted material of InsuranceGA 4205 IL 10 01 Services Office, Inc., with its permission. Page 2 of 2

COVERAGES, COVERAGE A.BODILY INJURY AND PROP-ERTY DAMAGE LIABILITY;SECTION I - COVERAGES,COVERAGE B. PERSONALAND ADVERTISING INJURYLIABILITY; or medical expensesunder SECTION I - COVER-AGES, COVERAGE C. MEDI-CAL PAYMENTS.

No other obligation or liability to paysums or perform acts or services iscovered unless expressly provided

for under SUPPLEMENTARY PAY-MENTS - COVERAGES A AND B.

b. This insurance applies to "personaland advertising injury" only if:

(1) The "personal and advertisinginjury" is caused by an offensearising out of your business; and

(2) The "personal and advertisinginjury" offense was committed inthe "coverage territory" duringthe policy period.

D. COVERAGE B. PERSONAL AND ADVER-TISING INJURY LIABILITY, 2. Exclusions, q.Additional Insured Prior Knowledge is de-leted in its entirety.


Includes copyrighted material of ISOGA 4250 11 05 Properties, Inc., with its permission Page 1 of 2


MOBILE EQUIPMENT SUBJECT TO MOTOR

VEHICLE INSURANCE LAWS



A. SECTION I - COVERAGES, COVERAGE A.BODILY INJURY AND PROPERTY DAMAGELIABILITY, 2. Exclusions, g. Aircraft, Auto orWatercraft is replaced by the following:


g. Aircraft, Auto or Watercraft

"Bodily injury" or "property damage" aris-ing out of the ownership, maintenance,use or entrustment to others of any air-craft, "auto" or watercraft owned or oper-ated by or rented or loaned to any in-sured. Use includes operation and"loading or unloading".

This exclusion applies even if the claimsagainst any insured allege negligence orother wrongdoing in the supervision, hir-ing, employment, training or monitoring ofothers by that insured, if the "occurrence"which caused the "bodily injury" or "prop-erty damage" involved the ownership,maintenance, use or entrustment to oth-ers of any aircraft, "auto" or watercraftthat is owned or operated by or rented orloaned to any insured.

This exclusion does not apply to:

(1) A watercraft while ashore on prem-ises that you own or rent;

(2) A watercraft you do not own that is:

(a) Less than 51 feet long; and

(b) Not being used to carry personsor property for a charge;

(3) Parking an "auto" on, or the waysnext to, premises you own or rent,provided the "auto" is not owned byor rented or loaned to you or the in-sured;

(4) Liability assumed under any "insuredcontract" for the ownership, mainte-nance or use of aircraft or watercraft;or

(5) "Bodily injury" or "property damage"arising out of the operation of any ofthe equipment listed in Paragraph f.

(2) or f. (3) of the definition of "mobileequipment".

B. SECTION II - WHO IS AN INSURED isamended to include:

4. With respect to "mobile equipment" reg-istered in your name under any motorvehicle registration law, any person is aninsured while driving such equipmentalong a public highway with your permis-sion. Any other person or organizationresponsible for the conduct of such per-son is also an insured, but only with re-spect to liability arising out of the opera-tion of the equipment, and only if no otherinsurance of any kind is available to thatperson or organization for this liability.However, no person or organization is aninsured with respect to:

a. "Bodily injury" to a co-"employee" ofthe person driving the equipment; or

b. "Property damage" to propertyowned by, rented to, in the charge ofor occupied by you or the employerof any person who is an insured un-der this provision.

C. SECTION V - DEFINITIONS, 3. "Auto" and 15."Mobile equipment" are replaced by the fol-lowing:

3. "Auto" means a land motor vehicle, traileror semitrailer designed for travel on pub-lic roads, including any attached machin-ery or equipment. But "auto" does not in-clude "mobile equipment".

15. "Mobile equipment" means any of thefollowing types of land vehicles, includingany attached machinery or equipment:

a. Bulldozers, farm machinery, forkliftsand other vehicles designed for useprincipally off public roads;

b. Vehicles maintained for use solelyon or next to premises you own orrent;

c. Vehicles that travel on crawlertreads;


Includes copyrighted material of ISOGA 4250 11 05 Properties, Inc., with its permission Page 2 of 2

d. Vehicles, whether self-propelled ornot, maintained primarily to providemobility to permanently mounted;

(1) Power cranes, shovels, loaders,diggers or drills; or

(2) Road construction or resurfacingequipment such as graders,scrapers or rollers;

e. Vehicles not described in a., b., c. ord. above that are not self-propelledand are maintained primarily to pro-vide mobility to permanently at-tached equipment of the followingtypes:

(1) Air compressors, pumps andgenerators, including spraying,welding, building cleaning, geo-physical exploration, lighting andwell servicing equipment; or

(2) Cherry pickers and similar de-vices used to raise or lowerworkers;

f. Vehicles not described in a., b., c. ord. above maintained primarily forpurposes other than the transporta-tion of persons or cargo.

However, self-propelled vehicles withthe following types of permanentlyattached equipment are not "mobileequipment" but will be considered"autos":

(1) Equipment designed primarily for:

(a) Snow removal;

(b) Road maintenance, but not con-struction or resurfacing; or

(c) Street cleaning;

(2) Cherry pickers and similar devicesmounted on automobile or truckchassis and used to raise or lowerworkers; and

(3) Air compressors, pumps and gen-erators, including spraying, welding,building cleaning, geophysical explo-ration, lighting and well servicingequipment.

D. This endorsement does not apply to any li-ability arising from an "occurrence" caused byor arising from any land vehicle if:

1. You have an Auto Coverage Form inforce at the time of the "occurrence"; and

2. The land vehicle meets the definition ofauto in your Auto Coverage Form or pol-icy, regardless of whether or not suchland vehicle is:

a. A covered auto under such AutoCoverage Form or policy; or

b. Specifically described on a scheduleof covered autos on your Auto Cov-erage Form or policy.


GA 4510 03 19 Page 1 of 1

NOTICE TO POLICYHOLDERSEXCLUSION - CONTRACTORS - PROFESSIONAL LIABILITY

This is a notice of a change in your policy. NO COVERAGE IS PROVIDED BY THIS NOTICE nor can it be construed to replace any provisions of your policy. YOU SHOULD READ YOUR POLICY AND REVIEWYOUR DECLARATIONS PAGE CAREFULLY for complete information on the coverage you are provided. If there is any conflict between the policy and this notice, THE PROVISIONS OF THE POLICY SHALL PREVAIL.

Reduction of Coverage:

CG 22 79 Exclusion - Contractors - Professional Liability has been added to your Commercial General Liability Coverage Part at the renewal of your policy.

This endorsement excludes coverage for the operations of providing engineering, architectural or surveying services to others or providing, or hiring independent professionals to provide, engineering, architectural or surveying services in connection with construction work you perform. These situations are intended to beinsured by a professional liability coverage part. Please consult with your insurance agent to determine your needs.


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GA 116 05 17 Page 1 of 10

EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM

TABLE OF CONTENTS

Begins on Page:

Preamble .......................................................................................................................................................2

SECTION I - EMPLOYMENT PRACTICES LIABILITY COVERAGE ..........................................................2

A. Insuring Agreement..............................................................................................................................2B. Exclusions ............................................................................................................................................3C. Supplementary Payments ...................................................................................................................4

SECTION II - WHO IS AN INSURED............................................................................................................4

SECTION III - LIMITS OF INSURANCE AND INSURED'S DEDUCTIBLE..................................................5

SECTION IV - CONDITIONS ........................................................................................................................6

A. Duties of the Insureds in the Event of Claim.....................................................................................6B. Legal Action Against Us ......................................................................................................................6C. Other Insurance....................................................................................................................................6D. Warranties.............................................................................................................................................6E. Transfer of Rights of Recovery Against Others To Us.....................................................................6F. Insured's Representative Clause........................................................................................................7G. Mediation and Allocation.....................................................................................................................7H. Acquisition of an Insured by Another Organization .........................................................................7I. Cessation of Subsidiaries ...................................................................................................................7J. Three-or Five-Year Policies.................................................................................................................7K. Office of Foreign Assets Control (OFAC) Compliance .....................................................................7

SECTION V - EXTENDED REPORTING PERIODS.....................................................................................7

SECTION VI - DEFINITIONS ........................................................................................................................8

A. "Benefits"................................................................................................................................................8B. "Bodily injury"..........................................................................................................................................8C. "Claim"....................................................................................................................................................8D. "Coverage territory" ................................................................................................................................8E. "Defense costs"......................................................................................................................................8F. "Domestic partner" .................................................................................................................................9G. "Employee".............................................................................................................................................9H. "Executive officer" ..................................................................................................................................9I. "Interrelated wrongful acts".....................................................................................................................9J. "Loss" .....................................................................................................................................................9K. "Personal injury" .....................................................................................................................................9L. "Pollutants" .............................................................................................................................................9M. "Property damage" .................................................................................................................................9N. "Subsidiary" ............................................................................................................................................9O. "Wrongful act".........................................................................................................................................9


GA 116 05 17 Page 2 of 10

NOTICE: THIS INSURANCE COVERAGE CONTAINS CLAIMS-MADE COVERAGE. EXCEPT AS MAY BE OTHERWISE PROVIDED HEREIN, THIS INSURANCE IS LIMITED TO "WRONGFUL ACTS" FOR WHICH "CLAIMS" ARE FIRST MADE AGAINST THE INSURED DURING THE POLICY PERIOD. PLEASE READ AND REVIEW THIS INSURANCE CAREFULLY AND DIS-CUSS THE COVERAGE WITH YOUR AGENT.

THE LIMITS OF INSURANCE AVAILABLE TO PAY JUDGMENTS OR SETTLEMENTS SHALLBE REDUCED BY AMOUNTS INCURRED FOR LEGAL DEFENSE.


Various provisions in this policy restrict coverage.Read the entire policy carefully to determine rights,duties and what is and is not covered.

Throughout this policy the words "you" and "your"refer to the Named Insured shown in the Declara-tions, and any other person or organization qualify-ing as a Named Insured under this policy. Thewords "we", "us" and "our" refer to the Company providing this insurance.

The word "insured" means any person or organiza-tion qualifying as such under SECTION II - WHO IS AN INSURED.

Other words and phrases that appear in quotationmarks have special meaning. Refer to SECTIONVI - DEFINITIONS.

SECTION I - EMPLOYMENT PRACTICES LIA-BILITY COVERAGE

A. Insuring Agreement

1. We will pay those sums that the insured becomes legally obligated to pay as dam-ages because of all "loss" generated by a"claim". We will have the right and duty toselect counsel and defend the insured against any "claim". However, we will have no duty to defend the insured against any "claim" seeking damages towhich this insurance does not apply. Wemay make any investigation we deem necessary and may, with the consent of the insured, make any settlement of any"claim" we deem expedient. However, ifthe insured withholds consent to such set-tlement, our liability for all "loss" in con-nection with such "claim" shall not exceedthe amount for which we could have set-tled such "claim" plus charges and ex-penses which have accrued since the date such settlement was proposed in writing by us to the insured; plus:

2. 90% of any settlement or judgment in ex-cess of the proposed settlement amount referenced in A.1. above plus 90% of any"defense costs" incurred after the date theinsured refused to consent to the pro-posed settlement. The remaining 10% ofany settlement or judgment in excess of the proposed settlement amount refer-

enced in A.1. above plus 10% of any "de-fense costs" incurred after the date the policy "insureds" refused to consent to the proposed settlement shall be borne by the "insureds", uninsured and at their own risk.

But:

a. The amount we will pay for all "loss"is limited as described in SECTION III - LIMITS OF INSURANCE ANDINSURED'S DEDUCTIBLE; and

b. Our right and duty to defend endswhen we have used up the applicablelimit of insurance in the defense and/or payment of judgments or set-tlements of covered "claims".

No other obligation or liability to pay sumsor perform acts or services is covered un-less specifically provided for under Sup-plementary Payments.

3. This insurance applies to "claims" only ifthose "claims":

a. Arise from a "wrongful act" commit-ted, attempted or allegedly committed or attempted:

(1) On or after the Retroactive Date, if any, shown in the Declarationsand prior to the termination ofthis Coverage Form; and

(2) In the "coverage territory"; and

b. Are first made against any insured in accordance with Paragraph 4. below during the policy period or any Ex-tended Reporting Period we may provide under SECTION V - EX-TENDED REPORTING PERIODS.

4. A "claim" for all "loss" will be deemed tohave been made at the earlier of the fol-lowing times:

a. When an insured reports to us or an-other insurer in writing an incident or circumstance that may lead to a "claim" or "loss"; or


GA 116 05 17 Page 3 of 10

b. When notice of such "claim" is re-ceived in writing by an insured or by us, whichever comes first.

B. Exclusions

1. This insurance does not apply to:

a. ADA Modifications

"Loss" incurred by the insured inmaking physical changes, modifica-tions, alterations, or improvements aspart of an accommodation pursuant to the Americans With Disabilities Act or similar provisions of any federal, state or local statutory or common law.

However, this exclusion does not ap-ply to "defense costs".

b. Bodily Injury and Property Damage

Any "claim" or "loss" based upon, arising out of, or in consequence ofany actual or alleged "bodily injury" or "property damage".

c. Contractual Liability

Any "claim" based upon, arising out of, or in consequence of, any actualor alleged obligation or liability of oth-ers assumed by an insured under any contract or agreement, either oral or written, except to the extent the in-sured would have been liable in the absence of the contract or agree-ment.

d. Fraudulent Act or Purposeful Vio-lation

Any "claim" or "loss" based upon, arising out of, or in consequence of, any deliberately fraudulent, dishon-est, criminal or malicious act or omis-sion or willful violation of any statute, law, rule, regulation, agreement, or judicial or regulatory order, if a finaland non-appealable judgment or ad-judication adverse to the insureds es-tablishes a deliberately fraudulent, dishonest, criminal or malicious act oromission or willful violation of any statute, law, regulation, agreement or judicial or regulatory order.

e. Pollutant

Any "claim" based upon, arising out of, in consequence of, or in any way involving:

(1) The actual, alleged, or threat-ened discharge, dispersal, seep-age, migration, emission, re-lease or escape of "pollutants"; or

(2) Any direction or request to test for, monitor, clean up, remove, contain, treat, detoxify, or neu-tralize "pollutants", including but not limited to "claims" alleging damage to an insured;

provided, however, this exclusion shall not apply to any "claim" under this Coverage Form for retaliatory treatment of a person with respect to actual or threatened disclosures by such person of matters described in (1) or (2) above.

f. Prior Known Acts

Any "claim" or "loss" based upon, arising out of, or in consequence of, any actual or alleged "wrongful act"committed, attempted, or allegedly committed or attempted prior to the effective date of this Coverage Form if:

(1) Notice of a "claim" or circum-stances which may lead to a"claim" have been reported un-der any previous policy, whether or not coverage applied, of whichthis Coverage Form is a renewal or replacement or which it may succeed in time; or

(2) The insured knew or shouldhave reasonably foreseen, prior to the effective date of the first consecutive Coverage Form is-sued by us, that such circum-stances might be the basis of a"claim" or "loss"; or

(3) Notice of a "claim" or circum-stances which may lead to a"claim" is based upon, arises out of, directly or indirectly resultsfrom or in consequence of, or inany way involves any prior or pending litigation, arbitration or administrative action as of theeffective date of the first consec-utive Coverage Form issued tothe insured by us.

g. Violation of Laws

Any "claim" based upon, arising out of, in consequence of, or in any wayinvolving any actual or alleged viola-tion(s) of any of the responsibilities, obligations, or duties imposed by the:

(1) Employee Retirement IncomeSecurity Act of 1974; or

(2) Fair Labor Standards Act (except the Equal Pay Act), except weshall reimburse the insured for


GA 116 05 17 Page 4 of 10

up to a maximum payment of$100,000 in "defense costs" that exceed the Deductible Amount as set forth in the Declarations. Any payment of "defense costs"shall be part of and not in addi-tion to the Limit of Insurance set forth in the Declarations and such payment reduces the Limit of Insurance; or

(3) National Labor Relations Act (in-cluding the Labor Management Relations Act of 1947); or

(4) Worker Adjustment and Retrain-ing Notification Act; or

(5) Consolidated Omnibus Budget Reconciliation Act of 1985; or

(6) Occupational Safety and HealthAct; or

any amendments to or rules or regu-lations promulgated pursuant to these laws, or similar provisions ofany federal, state, or local statutory or common law. However, this exclusion shall not apply to a "claim" for retalia-tory treatment of a person with re-spect to actual or threatened disclo-sures by such person of any actual or alleged violation of the Employee Re-tirement Income Security Act, the Fair Labor Standards Act, the Na-tional Labor Relations Act (including the Labor Management Relations Act of 1947), the Worker Adjustment and Retraining Notification Act, the Con-solidated Omnibus Budget Reconcili-ation Act or the Occupational Safety and Health Act by any insured.

h. Workers' Compensation and Simi-lar Laws

Any "claim" based upon, arising out of, in consequence of, or in any way involves any actual or alleged obliga-tion of any insured under a workers'compensation, unemployment insur-ance, social security, disability bene-fits or similar law, or derivative ac-tions arising out of any of these. However, this exclusion shall not ap-ply to any "claim" for retaliatory treatment by an insured due to the exercise of rights granted under any such law.

2. Severability of Exclusions

With respect to the exclusions in this poli-cy:

No fact regarding or knowledge pos-sessed by any insured shall be imputed to

any other insured to determine if coverage is available, except that facts pertaining to and knowledge possessed by any past, present or future Chief Financial Officer orChief Executive Officer of the Named In-sured shall be imputed to the Named In-sured to determine if coverage is availa-ble.

C. Supplementary Payments

We will pay with respect to any "claim" we de-fend:

1. The cost of any appeal bond, attachment bond, or any similar bond, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds.

2. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the "claim", in-cluding actual loss of earnings up to $250 a day because of time off from work.

These payments will not reduce the limits of insurance.


A. If you are designated in the Declarations as:

1. An individual, you and your spouse, or "domestic partner" are insureds but onlyto the extent such spouse or "domesticpartner" is a party to any "claim" solely in such person's capacity as a spouse or"domestic partner" of an "insured" and on-ly if the "claim" seeks damages recovera-ble from marital community property,property jointly held by the "insured" andthe spouse or "domestic partner", or property transferred from "insured" to the spouse or "domestic partner", but only with respect to the conduct of a businessof which you are the sole owner.

2. A partnership or joint venture, you are an insured and any "subsidiary". Your past,present and future members, your past,present and future partners, and their spouses or "domestic partners" are also insureds, but only to the extent suchspouse or "domestic partner" is a party to any "claim" solely in such person's capaci-ty as a spouse or "domestic partner" of an "insured" and only if the "claim" seeksdamages recoverable from marital com-munity property, property jointly held bythe "insured" and the spouse or "domesticpartner", or property transferred from "in-sured" to the spouse or "domestic part-ner", but only with respect to the conductof your business.

3. A limited liability company and any "sub-sidiary", you are an insured. Your past


GA 116 05 17 Page 5 of 10

present and future members are also in-sureds, but only with respect to the con-duct of your business. Your past, present and future managers are insureds, but on-ly with respect to their duties as your managers.

4. An organization other than a partnership, joint venture or limited liability company,you are an insured. Your past, present and future "executive officers" and direc-tors are insureds, but only with respect to their duties as your officers or directors. Your past and present stockholders are also insureds, but only with respect to their liability as stockholders.

B. Each of the following is also an insured:

1. Your past, present and future "employ-ees", other than either your "executive of-ficers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but onlyfor acts within the scope of their employ-ment by you or while performing duties re-lated to the conduct of your business.

2. Any natural person who is an independentcontractor as determined by federal, state or local law, but only while acting in the capacity as such for you or any "subsidi-ary" pursuant to an express writtenagreement between the independent con-tractor, or any entity on behalf of the inde-pendent contractor, and you or any "sub-sidiary" and only if you or any "subsidiary"agrees in writing to provide indemnifica-tion to such independent contractor; pro-vided, however, any coverage under thisCoverage Part for any such independent contractor shall be excess of any indemni-fication or insurance otherwise available to such independent contractor from anyother source;

including their estates, heirs, legal representa-tives or assigns in the event of their death, in-capacity or bankruptcy.

3. The estates, heirs, legal representatives or assigns of insureds who are deceased or have been declared incompetent.

C. Any organization you newly acquire or form, other than a partnership, joint venture or lim-ited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However, coverage under this provision is af-forded only until the 90th day after you acquire or form the organization or the end of the poli-cy period, whichever is earlier.

No person or organization is an insured with re-spect to the conduct of any current or past partner-

ship, joint venture or limited liability company that isnot shown as a Named Insured in the Declarations.

SECTION III - LIMITS OF INSURANCE AND IN-SURED'S DEDUCTIBLE

A. The Limits of Insurance shown in the Declara-tions and the rules below fix the most we will pay regardless of the number of:

1. Insureds under this Coverage Form;

2. "Claims" made or suits brought on ac-count of "wrongful acts" or otherwise; or

3. Persons or Organizations making "claims"or bringing suits.

B. Subject to C. below, our maximum liability for each "wrongful act" shall be the Limit of Insur-ance Per Wrongful Act as specified in the Dec-larations.

All "loss" arising out of the same "wrongful act"and all "interrelated wrongful acts" of any in-sured shall be deemed one "wrongful act" andhave been deemed to have originated in the earliest policy period in which a "claim" is firstmade against any insured alleging any such"wrongful act" or "interrelated wrongful acts".

C. The Aggregate Limit as specified in the Decla-rations is the most we will pay for "loss" for all "claims" to which this insurance applies.

D. "Defense costs" incurred by us or by the in-sured with our written consent are part of and not in addition to the Limits of Insurance speci-fied in the Declarations. Our payment of "de-fense costs" reduces the Limits of Insurance.

E. Our liability shall apply only to that part of each covered "loss" which is excess of the Deducti-ble Amount specified in the Declarations and such Deductible Amount shall be borne by the insureds.

F. Any "claim" which is made or maintained as a class action or other multiple plaintiff suit shall be deemed one "wrongful act" and shall besubject to the Per Wrongful Act Limit of Insur-ance and Deductible Amount shown in the Declarations.

G. In the event this Coverage Form is extended in accordance with the provisions of the Basic Extended Reporting Period, our total liability shall not exceed the Aggregate Limit shown in the Declarations for the last policy period in which coverage is provided hereunder.

The Limits of Insurance of this Coverage Form ap-ply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additionalperiod of less than 12 months. In that case, theadditional period will be deemed part of the last


GA 116 05 17 Page 6 of 10

preceding period for purposes of determining theLimits of Insurance.

SECTION IV - CONDITIONS

A. Duties of the Insureds in the Event of a Claim

As a condition precedent to coverage under this Coverage Form:

1. The insureds shall give us written notice as soon as practicable of any "claim"made against an insured for a "wrongful act" and shall give such information andcooperation as we may reasonably re-quire, including but not limited to a de-scription of the "claim", the nature of thealleged "wrongful act", the nature of the alleged injury, the names of the claimants,and the manner in which the insured first became made aware of the "claim".

2. The insureds shall provide us with all in-formation, assistance and cooperation which we reasonably request and agree that in the event of a "claim" the insuredswill do nothing that may prejudice our po-sition or our potential or actual rights of recovery.

3. The insureds shall not settle any "claim", incur any "defense costs" or otherwiseassume any contractual obligation or ad-mit any liability with respect to any "claim"without our written consent, which shall not be unreasonably withheld. We shall not be liable for any settlement, "defense costs", assumed obligation or admissionto which we have not consented.

B. Legal Action Against Us

No action shall lie against us unless, as a con-dition precedent thereto, there shall have been full compliance with all of the terms of this Coverage Form, nor until the amount of an in-sured's obligation to pay shall have been finallydetermined either by judgment against an in-sured after actual trial or by written agreement of the insured, the claimant and us.

Any person or organization or the legal repre-sentative thereof who has secured such judg-ment or written agreement shall thereafter be entitled to recover under this Coverage Form to the extent of the insurance afforded by this Coverage Form. No person or organization shall have any right under this Coverage Formto join us as a party to any action against an insured to determine an insured's liability. Bankruptcy or insolvency of an insured or of their estates shall not relieve us of any of our obligations hereunder.

C. Other Insurance

This insurance is primary except when all or any part of "loss" is also insured under any

other prior or current policy. Then this insur-ance is excess over that other insurance, whether primary, excess, contingent or on anyother basis, unless that other insurance was purchased specifically to apply in excess of this Coverage Form.

When this Coverage Form is excess:

1. We will have no duty to defend any"claim" when any other insurer has that duty. If another insurer fails to defend and we incur costs as a result of such failure, we will be entitled to the insured's rights against such other insurer; and

2. We will pay only our share of the amount of the "loss", if any, that exceeds the sum of:

a. The total amount that all such other insurance would pay for the "loss" in the absence of this Coverage Form; and

b. The total of all deductible and self-insured amounts under all such other insurance.

D. Warranties

By accepting this Coverage Form:

1. The insureds warrant that the application is attached to and forms a part of thisCoverage Form;

2. Each and every person who accepts the benefits of coverage as an insured war-rants:

a. That the statements in the applicationand Declarations are material to our acceptance of risk assumed by us; and

b. That we have issued this Coverage Form in reliance upon the truth of the statements in the application and Declarations; and

c. That coverage depends upon the truth of such statements.

E. Transfer of Rights of Recovery Against Others To Us

In the event of any payment under this Cover-age Form we shall be subrogated to the extent of such payment to all insured's rights of re-covery. In such case the insured shall execute all papers required and shall do everything necessary to secure and preserve such right, including the execution of such documents necessary to enable us to effectively bring suit in the name of the insured.


GA 116 05 17 Page 7 of 10

F. Insured's Representative Clause

By acceptance of this Coverage Form the first Named Insured shown in the Declarations agrees to act on behalf of all insureds with re-spect to the giving and receiving of notice of "claim", the acceptance of endorsements, the giving or receiving of any other notice provided for in this Coverage Form, and the exercisingor declining to exercise any right to an Extend-ed Reporting Period, and agree that such first Named Insured shall act on all insureds' be-half.

G. Mediation and Allocation

1. Any dispute including but not limited to tort claims or contract claims between an in-sured and us arising out of or relating to this Coverage Form shall be submitted to nonbinding mediation prior to com-mencement of an action between the par-ties. The mediator shall be chosen byagreement. If the parties cannot agree upon a mediator, the mediator shall be chosen by the American Arbitration Asso-ciation.

2. If both "loss" covered by this CoverageForm and loss not covered by this Cover-age Form are incurred, either because a "claim" against an insured includes bothcovered and uncovered matters or be-cause a "claim" is made against both aninsured and others, we will pay 100% of reasonable and necessary "defense costs" and all remaining "loss" will be allo-cated between covered "loss" and uncov-ered "loss" based upon the relative legal exposure of the parties to such matters.

3. If we and the insured cannot agree as to matters in Paragraph 2. of this condition prior to a judgment or finding in the civil or administrative proceeding dealing with "claims" against the insured, the partiesagree that they will, to the extent it is with-in their control, require that the allocationbetween covered "loss" and uncovered loss is made in such civil or administrativeproceeding. Such efforts shall include but are not limited to the submission of spe-cial interrogatories to the finder of fact in such proceedings. Such efforts shall not require us to become a party to such civil or administrative proceedings.

4. Notwithstanding Paragraph 3. of this con-dition, if we and the insured cannot agree as to matters in Paragraph 2. of this con-dition prior to a judgment or finding in anycivil or administrative proceeding in whichsuch issues are decided, we may at any time before or after mediation under Par-agraph 1. of this condition settle all "claims" against any or all insureds. Fol-lowing such settlement, any dispute be-

tween us and the insured as to the proper allocation of covered and uncovered mat-ters under Paragraph 2. of this condition shall be submitted to a nonbinding media-tion prior to the commencement of an ac-tion between the parties. In any event, on-ly one mediation as to the same issuesshall be required.

H. Acquisition of an Insured by Another Or-ganization

If (i) an insured merges into or consolidates with another organization, or (ii) another or-ganization or person or group of organizationsand/or persons acting in concert acquires se-curities or voting rights which result in owner-ship or voting control by the other organiza-tion(s) or person(s) of more than 50% of the outstanding securities representing the pre-sent right to vote for election of an insured's di-rectors, coverage under this Coverage Form shall continue until its termination, but only withrespect to "claims" for "wrongful acts" commit-ted, attempted or allegedly committed or at-tempted, by insureds prior to such merger, consolidation or acquisition.

I. Cessation of Subsidiaries

In the event a Named Insured ceases to be a"subsidiary", coverage with respect to such"subsidiary" and its insureds shall continue un-til termination of this Coverage Form, but onlywith respect to "claims" for "wrongful acts"committed, attempted, or allegedly committed or attempted prior to the date such organiza-tion ceases to be a "subsidiary".

J. Three-or Five-Year Policies

If this Coverage Form is issued for more than one year, the premium shall be computed an-nually based on our rates or premiums in ef-fect at each anniversary.

K. Office of Foreign Assets Control (OFAC) Compliance

Whenever insurance coverage provided bythis Coverage Form would be in violation of any United States economic or trade sanc-tions, such insurance shall be null and void.

SECTION V - EXTENDED REPORTING PERIODS

A. Upon termination of this insurance for any rea-son, other than cancellation for nonpayment of premium, we may provide one or more Ex-tended Reporting Periods as described below.

B. Extended Reporting Periods do not extend the policy period or change the scope of coverage provided. They extend the "claims" reporting period.

C. Such Extended Reporting Periods will applysolely with respect to "claims" first made in ac-cordance with SECTION I - EMPLOYMENT


GA 116 05 17 Page 8 of 10

PRACTICES LIABILITY COVERAGE, A. In-suring Agreement, 2. and Exclusion f. Prior Known Acts. Such "claims" must be reported to us prior to the expiration of the Extended Reporting Period.

D. A 90-day Basic Extended Reporting Period is automatically provided without additional charge.

The Basic Extended Reporting Period doesnot reinstate or increase the Limits of Insur-ance of this Coverage Form.

E. A Supplemental Extended Reporting Period is available, but only by endorsement and for an extra charge. This supplemental period starts when the Basic Extended Reporting Period, asset forth by Paragraph D., ends.

The insured must give us a written request for this endorsement within 60 days of the termi-nation of this insurance. The Supplemental Ex-tended Reporting Period will not go into effectunless the insured pays the additional premi-um promptly when due.

We will determine the additional premium in accordance with our rules and rates. In doing so, we may take into account the following:

1. The exposure insured;

2. Previous types and amounts of insurance; and

3. Other related factors.

The additional premium will not exceed 200% of the expiring annual premium of this Cover-age Form.

The endorsement shall set forth any terms that differ from the basic Coverage Form applica-ble to the Supplemental Extended Reporting Period.

If the Supplemental Extended Reporting Peri-od endorsement is in effect, we will provide a Supplemental Aggregate Limit of Insurance described below, but only for "claims" firstmade in accordance with SECTION I - EM-PLOYMENT PRACTICES LIABILITY COV-ERAGE, A. Insuring Agreement, 2. and Ex-clusion f. Prior Known Acts against any in-sured during our Extended Reporting Period.

The Supplemental Aggregate Limit of Insur-ance will be equal to the dollar amount shown in the Declarations for Aggregate Limit that is in effect at the end of the last policy period.

Any Extended Reporting Period will immedi-ately terminate on the effective date and hour of any other insurance issued to you which re-places this insurance. If you notify us of the ef-fective date of the other insurance, we will send you a refund of any pro rata unearned premium.

SECTION VI - DEFINITIONS

A. "Benefits" means perquisites, fringe benefits, payments in connection with an employee benefit plan and any other payment, other than salary or wages, to or for the benefit of an "employee" arising out of the employment rela-tionship.

B. "Bodily injury" means physical injury, sickness, disease or death of any person.

C. "Claim" means:

1. A written demand for monetary damage or non-monetary relief;

2. A civil proceeding commenced by filing ofa complaint or similar pleading;

3. A formal administrative or regulatory pro-ceeding commenced by a filing of charg-es, formal investigative order or similar document;

4. An arbitration, mediation or similar alter-native dispute resolution proceeding if theinsured is required or agrees to participate in such proceeding with our written con-sent; or

5. A written request to toll or waive a statuteof limitations relating to a potential "claim"described above;

which is brought by or on behalf of any past, present or prospective "employee(s)" of a Named Insured against any of the insureds, including any appeal therefrom, as the result of an alleged "wrongful act".

D. "Coverage territory" means anywhere.

E. "Defense costs" means reasonable and nec-essary fees, costs, and expenses incurred byus or with our consent on behalf of the insuredor reimbursed to any insured by us, resulting solely from the investigation, adjustment, de-fense and appeal of any "claim". "Defensecosts" includes but is not limited to the cost ofexpert consultants and witnesses, premiums for appeal, attachment or supersedeas bonds (but not the obligation to furnish such bonds).

"Defense costs" do not include:

1. Expenses explicitly provided for under Supplementary Payments; or

2. The salaries, wages, overhead or ex-penses of our employees or your direc-tors, officers or "employees", other than that portion of our employed attorneys'fees, salaries and expenses allocated to a specific "claim"; or

3. Any amount covered by the duty to defend obligation of any other insurer; or

4. Any pre-tender fees, costs or expenses.


GA 116 05 17 Page 9 of 10

F. "Domestic partner" means a natural person who is not otherwise an "insured", in a commit-ted relationship with an insured person, which is legally recognizable as a marriage, civil un-ion or domestic partnership in the state where the "claim" is made or suit is filed and the legal existence of the relationship is verifiable by le-gal, government documentation existing prior to the date of the "wrongful act" complained ofin the "claim".

G. "Employee" includes but is not limited to full-time, part-time, seasonal, volunteer, leased or contingent workers as determined by federal, state or local law. "Employee" does not includeindependent contractors as determined byfederal, state or local law.

H. "Executive officer" means a person holdingany of the officer positions created by your charter, constitution, bylaws or any other simi-lar governing document.

I. "Interrelated wrongful acts" means all causallyconnected "wrongful acts".

J "Loss" means "defense costs" and the total amount of monetary damages which the "in-sured" becomes legally obligated to pay on account of any "claim" for a "wrongful act" with respect to which coverage hereunder applies, including damages (including back pay and front pay), judgments, settlements, prejudg-ment and postjudgment interest and punitive or exemplary damages or the multiplied por-tion of any multiplied damage award if insura-ble under the applicable law most favorable to the insurability of punitive, exemplary or multi-plied damages.

"Loss" shall not include any amount for which an "insured" is not financially liable, compen-sation earned in the course of employment but not paid by an "insured" or matters which aredeemed uninsurable under the law pursuant towhich this Coverage Form shall be construed.

"Loss" shall not include, (other than "defense costs"):

1. "Benefits" or the equivalent value, howev-er, this provision does not apply to "loss"resulting solely from wrongful termination of employment; or

2. Amounts which arise out of, are based upon, or are attributable to the employ-ment reinstatement of the claimant by an "insured" or the continued employment ofthe claimant; or

3. Future compensation, including salary or "benefits" for an "employee" if the "in-sured" is ordered in accordance with a judgment or other final adjudication but fails to reinstate the claimant as an "em-ployee"; or

4. Civil or criminal fines or penalties imposed by law, liquidated damages, payroll or other taxes, or damages, penalties or types of relief deemed uninsurable underapplicable law; or

5. Future compensation, including salary or "benefits" for an "employee" who has been or will be hired, promoted or rein-stated to employment pursuant to a set-tlement, court order, judgment, award or other resolution of a "claim"; or

6. Medical, pension, disability, life insurance, stock option or other "employee" type "benefit".

K "Personal injury" means injury, other than "bodily injury", arising out of one or more of the following offenses:

1. False arrest, detention or imprisonment;

2. Oral or written publication of material that libels or slanders a past, present or pro-spective "employee";

3. Invasion of a past, present or prospective "employee's" right of privacy;

4. Malicious prosecution; or

5. Abuse of process.

L. "Pollutants" means any solid, liquid, gaseousor thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkalis, chemicals, petroleum products and their by-products and waste. Waste includes materialto be recycled, reconditioned or reclaimed.

"Pollutants" include but are not limited to sub-stances which are generally recognized in in-dustry or government to be harmful or toxic to persons, property or the environment.

M. "Property damage" means:

1. Physical injury to tangible property, includ-ing all resulting loss of use of that proper-ty. All such loss of use shall be deemed to have taken place at the time of the physi-cal injury that caused it; or

2. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to have taken place at the time of the incident that caused it.

N. "Subsidiary" means any organization in whichmore than 50% of the outstanding securities or voting rights representing the present right to vote for election of directors is owned or con-trolled, directly or indirectly, in any combina-tion, by one or more of the insureds.

O. "Wrongful act" means any error, misstatementor misleading statement, act or omission, or neglect or breach of duty by an insured or any


GA 116 05 17 Page 10 of 10

person for whose acts the insured is legally li-able for:

1. Wrongful discharge or termination of em-ployment, including constructive dis-charge;

2. Breach of any oral, written or implied em-ployment contract or quasi-employment contract except for that part of any ex-press contract of employment or an ex-press obligation to make payments in the event of the termination of employment;

3. Employment related misrepresentation;

4. Violation of any federal, state or local lawthat concerns employment discriminationor harassment including sexual harass-ment involving unwelcome sexual ad-vances, requests for sexual favors or oth-er conduct of a sexual nature, or work-place bullying or workplace harassment ofa nonsexual nature, that:

a. Are made a condition of employment;

b. Are used as a basis for employment decisions; or

c. Create a work environment that inter-feres with performance;

5. Wrongful failure to employ or promote;

6. Wrongful discipline;

7. Wrongful deprivation of a career oppor-tunity;

8. Negligent hiring, supervision, promotion, retention, or evaluation;

9. Employment related "personal injury";

10. Wrongful failure to grant tenure;

11. Employment related wrongful infliction of emotional distress;

12. Violation of the Family Medical Leave Act;

13. Wrongful retaliation;

14. Wrongful denial of training, denial or dep-rivation of seniority or evaluation; or

15. Failure to adopt, create, provide or en-force adequate workplace or employment practices and procedures;

including any actual or alleged assault, battery, or loss of consortium, in connection with Para-graphs 1. through 15. above.


GA 234 IL 04 16 Page 1 of 2


ILLINOIS CHANGES - EMPLOYMENT PRACTICES LIABILITYCOVERAGE FORM



A. SECTION I - EMPLOYMENT PRACTICES LIABILITY COVERAGE, B. Exclusions, e. Pollutant is deleted and replaced by the fol-lowing:

e. Pollutant

Where all or part of such "claim" is basedupon, arising out of, directly or indirectlyresulting from or in consequence of, or in any way involving:

(1) The actual, alleged, or threatened discharge, dispersal, seepage, migra-tion, emission, release or escape of"pollutants" except injury arising outof heat, smoke or fumes from a hos-tile fire. Hostile fire means one which becomes uncontrollable or breaks outfrom where it was intended to be. Or,

(2) Any direction or request to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize "pollu-tants", including but not limited to "claims" alleging damage to an in-sured,

provided, however, this exclusion shall notapply to any "claim" under this CoverageForm for retaliatory treatment of a person with respect to actual or threatened dis-closures by such person of matters de-scribed in (1) or (2) above.

B. The following items are added to SECTION I -EMPLOYMENT PRACTICES LIABILITY COVERAGE, C. Supplementary Payments:

3. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the appli-cable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer.

4. All interest on the full amount of anyjudgment that accrues after entry of the judgment and before we have paid, of-fered to pay, or deposited in court the part of the judgment that is within the applica-ble limit of insurance.

C. SECTION IV - CONDITIONS, C. Other Insur-ance is deleted and replaced by the following:

C. Other Insurance

If the insured has insurance provided byother companies against a loss covered by this policy, we shall not be liable under this policy for a greater proportion of such loss and claims expenses than the appli-cable limit of insurance stated in the Dec-larations bears to the total applicable limit of insurance of all valid and collectible in-surance against such loss.

D. SECTION IV - CONDITIONS, K. Office ofForeign Assets Control (OFAC) Complianceis deleted and replaced by the following:

K. Office of Foreign Assets Control (OFAC) Compliance

Whenever insurance coverage provided by this policy would be in violation of any United States economic or trade sanc-tions, such insurance coverage will not be provided under this policy.

E. SECTION IV - CONDITIONS, I. Cessation of Subsidiaries is deleted and replaced by thefollowing:

I. Cessation of Subsidiaries

In the event a Named Insured ceases to be a "subsidiary" on or after the Retroac-tive Date shown in the Declarations, cov-erage with respect to such "subsidiary"and its insureds shall continue until termi-nation of this Coverage Part, and subjectto any applicable Extended Reporting Pe-riod, but only with respect to "claims " for"wrongful acts" committed, attempted, orallegedly committed or attempted on orafter the Retroactive Date shown in theDeclarations and prior to the date suchorganization ceases to be a "subsidiary

F. SECTION V - EXTENDED REPORTING PE-RIODS, A. is deleted and replaced by the fol-lowing:

A. Upon termination of this insurance for anyreason, we may provide one or more Ex-tended Reporting Periods as described below. Any payments made will be ap-plied to any outstanding premium owed


GA 234 IL 04 16 Page 2 of 2

before being applied to premiums due for any extended reporting periods.

G. SECTION VI - DEFINITIONS is amended asfollows:

Definition J. "Loss" is hereby deleted and re-placed by the following:

J. "Loss" means "defense costs" and the to-tal amount of monetary damages which the "insured" becomes legally obligated topay on account of any "claim" for a "wrongful act" with respect to which cov-erage hereunder applies, including dam-ages, judgments, settlements, and puni-tive or exemplary damages or the multi-plied portion of any multiplied damage award if insurable under the applicable law most favorable to the insurability of punitive, exemplary or multiplied damag-es. However, in no event will the punitive, exemplary damages or the multiplied por-tion of any multiplied damages be insura-ble under this contract of insurance with respect to a "claim" brought against an Il-linois domiciled insured in an Illinois state court, except to the extent such damagesare insurable under Illinois law. Illinois law dictates that an insurer may not reimburse an insured for punitive damages as-sessed as a result of the insured's own misconduct.

"Loss" shall not include any amount forwhich an "insured" is not financially liable,compensation earned in the course ofemployment but not paid by an "insured"or matters which are deemed uninsurable under the law pursuant to which this Cov-erage Form shall be construed.

"Loss" shall not include, (other than "de-fense costs"):

1. "Benefits" or the equivalent value, however, this provision does not ap-ply to "loss" resulting solely from wrongful termination of employment; or

2. Amounts which arise out of, are based upon, or are attributable to the employment reinstatement of the claimant by an "insured" or the con-tinued employment of the claimant; or

3. Future compensation, including sala-ry or "benefits" for an "employee" if the "insured" is ordered in accord-ance with a judgment or other final adjudication, but fails to reinstate the claimant as an "employee"; or

4. Civil or criminal fines or penalties im-posed by law, liquidated damages, payroll or other taxes, or damages, penalties or types of relief deemed uninsurable under applicable law; or

5. Future compensation, including sala-ry or "benefits" for an "employee" who has been or will be hired, promoted or reinstated to employment pursuant to a settlement, court order, judg-ment, award or other resolution of a "claim"; or

6. Medical, pension, disability, life insur-ance, stock option or other "employ-ee" type "benefit".


Includes copyrighted material of ISOGA 391 07 03 Properties, Inc., with its permission.


WAR LIABILITY EXCLUSION


EMPLOYMENT PRACTICES LIABILITY COVERAGE PART

The following exclusion is added:


War

Any "claim" or "loss", however caused, arising, directly or indirectly, out of:

1. War, including undeclared or civil war; or

2. Warlike action by a military force, includ-ing action in hindering or defending against an actual or expected attack, by any government, sovereign or other au-thority using military personnel or other agents; or

3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending againstany of these.



LIQUOR LIABILITY COVERAGE PART DECLARATIONS

Attached to and forming part of POLICY NUMBER:


Legal Entity / Business Description

LIMITS OF INSURANCE

Each Common Cause Limit $

Aggregate Limit $

EPP 049 72 16

LIMITED LIABILITY COMPANY

1,000,000

2,000,000

CLASSIFICATION CODE NO. PREMIUM BASE RATE ADVANCE PREMIUM

CLUBS 70423 500,000 4.571 2,286

TOTAL PREMIUM $ 2,286

FORMS AND / OR ENDORSEMENTS APPLICABLE TO LIQUOR LIABILITY COVERAGE PART:LIQUOR LIABILITY COVERAGE FORMGA115 12/04DEDUCTIBLE LIABILITY INSURANCECG0305 01/96ILLINOIS CHANGES - KNOWN INJURY OR DAMAGEGA4206IL 10/01

GA 539 07 08 Page ofEPP 049 72 16 1 1



LIQUOR LIABILITY COVERAGE FORM

Various provisions in this Coverage Part restrictthis insurance. Read the entire Coverage Partcarefully to determine rights, duties and what isand is not covered.

Throughout this Coverage Part the words "you"and "your" refer to the Named Insured shown inthe Declarations, and any other person or organi-zation qualifying as a Named Insured under thisCoverage Part. The words "we", "us" and "our"refer to the Company providing this insurance.

The word "insured" means any person or organi-zation qualifying as such under SECTION II - WHOIS AN INSURED.

Other words and phrases that appear in quotationmarks have special meaning. Refer to SECTIONV - DEFINITIONS.

SECTION I - LIQUOR LIABILITY COVERAGE


a. We will pay those sums that the insuredbecomes legally obligated to pay asdamages because of "injury" to which thisinsurance applies if liability for such "in-jury" is imposed on the insured by reasonof the selling, serving or furnishing of anyalcoholic beverage. We will have theright and duty to defend the insuredagainst any "suit" seeking those dam-ages. However, we will have no duty todefend the insured against any "suit"seeking damages for "injury" to which thisinsurance does not apply. We may, atour discretion, investigate any "injury"and settle any claim or "suit" that may re-sult. But:


(2) Our right and duty to defend endswhen we have used up the applica-ble limit of insurance in the paymentof judgments or settlements.

No other obligation or liability to pay sumsor perform acts or services is coveredunless expressly provided for underSUPPLEMENTARY PAYMENTS.

b. This insurance applies to "injury" only if:

(1) The "injury" occurs during the policyperiod in the "coverage territory";and

(2) Prior to the "coverage term" in which"injury" occurs, you did not know, perParagraph 1.d. below, that the "in-

jury" had occurred or had begun tooccur, in whole or in part.

c. "Injury" which:

(1) Occurs during the "coverage term";and

(2) Was not, prior to the "coverageterm", known by you, per Paragraph1.d. below, to have occurred;

includes any continuation, change or re-sumption of that "injury" after the end ofthe "coverage term" in which it first be-came known by you.

d. You will be deemed to know that "injury"has occurred at the earliest time whenany "authorized representative":

(1) Reports all, or any part, of the "injury"to us or any other insurer;

(2) Receives a written or verbal demandor claim for damages because of the"injury";

(3) First observes, or reasonably shouldhave first observed, the "injury";

(4) Becomes aware, or reasonablyshould have become aware, by anymeans other than as described in (3)above, that "injury" had occurred orhad begun to occur; or

(5) Becomes aware, or reasonablyshould have become aware, of acondition from which "injury" is sub-stantially certain to occur.

2. Exclusions


a. Expected or Intended Injury

"Injury" which may reasonably be ex-pected to result from the intentional orcriminal acts of the insured or which is infact expected or intended by the insured,even if the "injury" is of a different degreeor type than actually expected or in-tended. This exclusion does not apply to"bodily injury" resulting from the use ofreasonable force to protect persons orproperty.

b. Workers' Compensation and SimilarLaws

Any obligation of the insured under aworkers' compensation, disability benefitsor unemployment compensation law orany similar law.



c. Employer's Liability

"Bodily injury" to:

(1) An "employee" of the insured sus-tained in the "workplace";

(2) An "employee" of the insured arisingout of the performance of duties re-lated to the conduct of the insured'sbusiness; or

(3) The spouse, child, parent, brother orsister of that "employee" as a conse-quence of Paragraphs (1) or (2)above.



(2) To any obligation to share damageswith or repay someone else whomust pay damages because of the"injury".

d. Liquor License Not in Effect

"Injury" arising out of any alcoholic bev-erage sold, served or furnished while anyrequired license is not in effect.

e. Your Product

"Injury" arising out of "your product". Thisexclusion does not apply to "injury" forwhich the insured or the insured's indem-nitees may be held liable by reason of:

(1) Causing or contributing to the intoxi-cation of any person;

(2) The furnishing of alcoholic bever-ages to a person under the legaldrinking age or under the influenceof alcohol; or

(3) Any statute, ordinance or regulationrelating to the sale, gift, distributionor use of alcoholic beverages.

f. Other Insurance

Any "injury" with respect to which otherinsurance is afforded, or would be af-forded but for the exhaustion of the limitsof insurance.

This exclusion does not apply if the otherinsurance responds to liability for "injury"imposed on the insured by reason of theselling, serving or furnishing of any alco-holic beverage.

g. War

"Injury", however caused, arising, directlyor indirectly, out of:



(3) Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hinderingor defending against any of these.

SUPPLEMENTARY PAYMENTS

We will pay, with respect to any claim we investi-gate or settle, or any "suit" against an insured wedefend:

1. All expenses we incur.

2. The cost of bonds to release attachments, butonly for bond amounts within the applicablelimit of insurance. We do not have to furnishthese bonds.

3. All reasonable expenses incurred by the in-sured at our request to assist us in the inves-tigation or defense of the claim or "suit", in-cluding actual loss of earnings up to $250 aday because of time off from work.

4. All costs taxed against the insured in the"suit".

5. Prejudgment interest awarded against theinsured on that part of the judgment we be-come obligated to pay and which falls withinthe applicable limit of insurance. If we makean offer to pay the applicable limit of insur-ance, we will not pay any prejudgment interestbased on that period of time after the offer.

6. All interest on the full amount of any judgmentthat accrues after entry of the judgment andbefore we have paid, offered to pay, or de-posited in court the part of the judgment thatis within the applicable limit of insurance.

7. Expenses incurred by the insured for first aidadministered to others at the time of an eventto which this insurance applies.

These payments will not reduce the limits of insur-ance.


1. If you are designated in the Declarations as:

a. An individual, you and your spouse areinsureds.

b. A partnership or joint venture, you are aninsured. Your members, your partners,and their spouses are also insureds, butonly with respect to the conduct of yourbusiness.



c. A limited liability company, you are an in-sured. Your members are also insureds,but only with respect to the conduct ofyour business. Your managers are in-sureds, but only with respect to their du-ties as your managers.

d. An organization other than a partnership,joint venture or limited liability company,you are an insured. Your "executive offi-cers" and directors are insureds, but onlywith respect to their duties as your offi-cers or directors. Your stockholders arealso insureds, but only with respect totheir liability as stockholders.

2. Each of the following is also an insured:

a. Your "employees", other than either your"executive officers" (if you are an organi-zation other than a partnership, jointventure or limited liability company) oryour managers (if you are a limited liabil-ity company), but only for acts within thescope of their employment by you orwhile performing duties related to theconduct of your business. However,none of these "employees" is an insuredfor:

(1) "Injury":

(a) To you, to your partners ormembers (if you are a partner-ship or joint venture), to yourmembers (if you are a limited li-ability company), or to a co-"employee" while that co-"employee" is either in thecourse of his or her employmentor performing duties related tothe conduct of your business;

(b) To the spouse, child, parent,brother or sister of that co-"employee" as a consequenceof Paragraph (1)(a) above; or

(c) For which there is any obligationto share damages with or repaysomeone else who must paydamages because of the "injury"described in Paragraphs (1)(a)or (b) above.

(2) "Property damage" to property:

(a) Owned or occupied by; or

(b) Rented or loaned,

to that "employee", any of your other"employees", by any of your partnersor members (if you are a partnershipor joint venture), or by any of yourmembers (if you are a limited liabilitycompany).

b. Any person or organization having propertemporary custody of your property if youdie, but only:

(1) With respect to liability arising out ofthe maintenance or use of that prop-erty; and

(2) Until your legal representative hasbeen appointed.

c. Your legal representative if you die, butonly with respect to duties as such. Thatrepresentative will have all your rightsand duties under this Coverage Part.

3. Any organization you newly acquire or form,other than a partnership, joint venture or lim-ited liability company, and over which youmaintain ownership or majority interest, willqualify as a Named Insured if there is no othersimilar insurance available to that organiza-tion. However:

a. Insurance under this provision is affordedonly until the 90th day after you acquireor form the organization or the end of thepolicy period, whichever is earlier; and

b. This insurance does not apply to "injury"that occurred before you acquired orformed the organization.

No person or organization is an insured with re-spect to the conduct of any current or past part-nership, joint venture or limited liability companythat is not shown as a Named Insured in the Dec-larations.

SECTION III - LIMITS OF INSURANCE

1. The Limits of Insurance shown in the Declara-tions and the rules below fix the most we willpay regardless of the number of:

a. Insureds;

b. Claims made or "suits" brought; or

c. Persons or organizations making claimsor bringing "suits".

2. The Aggregate Limit is the most we will payfor all "injury" as the result of the selling,serving or furnishing of alcoholic beverages.

3. Subject to the Aggregate Limit, the EachCommon Cause Limit is the most we will payfor all "injury" sustained by one or more per-sons or organizations as the result of theselling, serving or furnishing of any alcoholicbeverage to any one person.

The Limits of Insurance of this Coverage Part ap-ply separately to each "coverage term".

SECTION IV - LIQUOR LIABILITYCONDITIONS

1. Bankruptcy



Bankruptcy or insolvency of the insured or ofthe insured's estate will not relieve us of ourobligations under this Coverage Part.

2. Duties in the Event of Injury, Claim or Suit

a. You must see to it that we are notified assoon as practicable of an "injury" whichmay result in a claim. To the extent pos-sible, notice should include:

(1) How, when and where the "injury"took place;

(2) The names and addresses of anyinjured persons and witnesses; and

(3) The nature and location of any "in-jury".

b. If a claim is made or "suit" is broughtagainst any insured, you must:

(1) Immediately record the specifics ofthe claim or "suit" and the date re-ceived; and


You must see to it that we receive writtennotice of the claim or "suit" as soon aspracticable.

c. You and any other involved insured must:

(1) Immediately send us copies of anydemands, notices, summonses orlegal papers received in connectionwith the claim or "suit";

(2) Authorize us to obtain records andother information;

(3) Cooperate with us in the investiga-tion or settlement of the claim or de-fense against the "suit"; and

(4) Assist us, upon our request, in theenforcement of any right against anyperson or organization which may beliable to the insured because of "in-jury" to which this insurance mayalso apply.

d. No insured will, except at that insured'sown cost, voluntarily make a payment,assume any obligation, or incur any ex-pense, other than for first aid, without ourconsent.


No person or organization has a right underthis Coverage Part:

a. To join us as a party or otherwise bringus into a "suit" asking for damages froman insured; or

b. To sue us on this Coverage Part unlessall of its terms have been fully compliedwith.

A person or organization may sue us to re-cover on an agreed settlement or on a finaljudgment against an insured; but we will notbe liable for damages that are not payableunder the terms of this Coverage Part or thatare in excess of the applicable limit of insur-ance. An agreed settlement means a settle-ment and release of liability signed by us, theinsured and the claimant or the claimant's le-gal representative.

4. Liberalization

If, within 60 days prior to the beginning of thisCoverage Part or during the policy period, wemake any changes to any forms or endorse-ments of this Coverage Part for which there iscurrently no separate premium charge, andthat change provides more coverage than thisCoverage Part, the change will automaticallyapply to this Coverage Part as of the latter of:

a. The date we implemented the change inyour state; or


will be considered as included until the end ofthe current policy period. We will make noadditional premium charge for this additionalcoverage during the interim.

5. Other Insurance

If other valid and collectible insurance isavailable to the insured for a loss we coverunder this Coverage Part, our obligations arelimited as follows:


This insurance is primary. Our obliga-tions are not affected unless any of theother insurance is also primary. Then,we will share with all that other insuranceby the method described in b. below.

b. Method of Sharing

If all of the other insurance permits con-tribution by equal shares, we will followthis method also. Under this approacheach insurer contributes equal amountsuntil it has paid its applicable limit of in-surance or none of the loss remains,whichever comes first.

If any of the other insurance does notpermit contribution by equal shares, wewill contribute by limits. Under thismethod, each insurer's share is based onthe ratio of its applicable limit of insuranceto the total applicable limits of insuranceof all insurers.



6. Premium Audit

a. We will compute all premiums for thisCoverage Part in accordance with ourrules and rates.

b. Premium shown in this Coverage Part asadvance premium is a deposit premiumonly. At the close of each audit period wewill compute the earned premium for thatperiod and send notice to the first NamedInsured. The due date for audit and ret-rospective premiums is the date shownas the due date on the bill. If:

(1) The earned premium is less than thedeposit premium, we will return theexcess to the first Named Insured; or

(2) The earned premium is greater thanthe deposit premium, the differencewill be due and payable to us by thefirst Named Insured upon notice fromus.

c. The first Named Insured must keep rec-ords of the information we need for pre-mium computation, and send us copies atsuch times as we may request.

7. Representations

By accepting this Coverage Part, you agree:

a. The statements in the Declarations areaccurate and complete;

b. Those statements are based upon repre-sentations you made to us; and

c. We have issued this Coverage Part in re-liance upon your representations.


Except with respect to the Limits of Insurance,and any rights or duties specifically assignedin this Coverage Part to the first Named In-sured, this insurance applies:

a. As if each Named Insured were the onlyNamed Insured; and

b. Separately to each insured against whomclaim is made or "suit" is brought.


If the insured has rights to recover all or partof any payment we have made under thisCoverage Part, those rights are transferred tous. The insured must do nothing after loss toimpair them. At our request, the insured willbring "suit" or transfer those rights to us andhelp us enforce them.

10. Two or More Coverage Forms or PoliciesIssued by Us

If this Coverage Part and any other CoverageForm, Coverage Part or policy issued to youby us or any company affiliated with us applyto the same "injury", the aggregate maximumlimit of insurance under all the CoverageForms, Coverage Parts or policies shall notexceed the highest applicable limit of insur-ance under any one Coverage Form, Cover-age Part or policy. This condition does notapply to any Coverage Form, Coverage Partor policy issued by us or an affiliated companyspecifically to apply as excess insurance overthis Coverage Part.


If we decide not to renew this Coverage Part,we will mail or deliver to the first Named In-sured shown in the Declarations written noticeof the nonrenewal not less than 30 days be-fore the expiration date.



1. "Authorized representative" means:

a. If you are designated in the Declarationsas:

(1) An individual, you and your spouseare "authorized representatives".

(2) A partnership or joint venture, yourmembers, your partners, and theirspouses are "authorized representa-tives".

(3) A limited liability company, yourmembers and your managers are"authorized representatives".

(4) An organization other than a part-nership, joint venture or limited liabil-ity company, your "executive offi-cers" and directors are "authorizedrepresentatives". Provided you arenot a publicly traded organization,your stockholders are also "author-ized representatives".

b. Your "employees":

(1) Assigned to manage your insuranceprogram; or

(2) Responsible for giving or receivingnotice of an "injury", claim or "suit";

are also "authorized representatives".

2. "Bodily injury" means bodily injury, sickness ordisease sustained by a person, includingdeath resulting from any of these at any time.

3. "Coverage term" means the following individ-ual increment, or if a multi-year policy period,



increments, of time, which comprise the policyperiod of this Coverage Part:

a. The year commencing on the EffectiveDate of this Coverage Part at 12:01 AMstandard time at your mailing addressshown in the Declarations, and if a multi-year policy period, each consecutive an-nual period thereafter, or portion thereof ifany period is for a period of less than 12months, constitute individual "coverageterms". The last "coverage term" ends at12:00 AM standard time at your mailingaddress shown in the Declarations on theearlier of:


(2) The day the policy to which this Cov-erage Part is attached is terminatedor cancelled.

b. However, if after the issuance of thisCoverage Part, any "coverage term" isextended for an additional period of lessthan 12 months, that additional period oftime will be deemed to be part of the lastpreceding "coverage term".


a. The United States of America (includingits territories and possessions), PuertoRico and Canada;

b. International waters or airspace, but onlyif the "injury" occurs in the course oftravel or transportation between anyplaces included in a. above; or

c. All other parts of the world if the "injury"arises out of:

(1) Goods or products made or sold byyou in the territory described in a.above; or

(2) The activities of a person whosehome is in the territory described ina. above, but is away for a short timeon your business provided the in-sured's responsibility to pay dam-ages is determined in a "suit" on themerits, in the territory described in a.above or in a settlement to which weagree.

5. "Employee" includes a "leased worker". "Em-ployee" does not include a "temporaryworker".

6. "Executive Officer" means a person holdingany of the officer positions created by yourcharter, constitution, by-laws or any othersimilar governing document.

7. "Injury" means all damages, including dam-ages because of "bodily injury" and "property

damage", and including damages for care,loss of services or loss of support. "Injury"does not include civil or criminal fines or pen-alties imposed by law.

8. "Leased worker" means a person leased toyou by a labor leasing firm under an agree-ment between you and the labor leasing firm,to perform duties related to the conduct ofyour business. "Leased worker" includes su-pervisors furnished to you by the labor leasingfirm. "Leased worker" does not include a"temporary worker".

9. "Property damage" means:

a. Physical injury to tangible property, in-cluding all resulting loss of use of thatproperty. All such loss of use shall bedeemed to occur at the time of the physi-cal injury that caused it; or

b. Loss of use of tangible property that isnot physically injured. All such loss ofuse shall be deemed to occur at the timeof the occurrence that caused it.

10. "Suit" means a civil proceeding in whichmoney damages because of "injury" to whichthis insurance applies are alleged. "Suit" in-cludes:

a. An arbitration proceeding in which suchdamages are claimed and to which theinsured must submit or does submit withour consent;

b. Any other alternative dispute resolutionproceeding in which such damages areclaimed and to which the insured submitswith our consent; or

c. An appeal of a civil proceeding.

11. "Temporary worker" means a person who isfurnished to you to substitute for a permanent"employee" on leave or to meet seasonal orshort-term workload conditions.

12. "Workplace" means that place and duringsuch hours to which the "employee" sustain-ing "bodily injury" was assigned by you, orany other person or entity acting on your be-half, to work on the date of "injury".

13. "Your product":

a. Means:

(1) Any goods or products, other thanreal property, manufactured, sold,handled, distributed or disposed ofby:

(a) You;

(b) Others trading under your name;or



(c) A person or organization whosebusiness or assets you haveacquired; and

(2) Containers (other than vehicles),materials, parts or equipment fur-nished in connection with suchgoods or products.

b. Includes:

(1) Warranties or representations madeat any time with respect to the fit-ness, quality, durability, performanceor use of "your product"; and


c. Does not include vending machines orother property rented to or located for theuse of others but not sold.


CG 03 05 01 96 Copyright, Insurance Office, Inc., 1994


DEDUCTIBLE LIABILITY INSURANCEThis endorsement modifies insurance provided under the following:

LIQUOR LIABILITY COVERAGE PART

SCHEDULE

Location

Coverage Amount and Basis of Deductible

PER CLAIM or PER COMMON CAUSE

Liquor Liability $ $


APPLICATION OF ENDORSEMENT (Enter below any limitations on the application of this endorsement. Ifno limitation is entered, the deductibles apply to damages for "injury", however caused):

A. Our obligation under the Liquor Liability Cov-erage to pay damages on your behalf appliesonly to the amount of damages in excess ofany deductible amount stated in the Scheduleabove.

B. You may select a deductible amount on eithera per claim or a per common cause basis.Your selected deductible applies to the LiquorLiability Coverage and to the basis of the de-ductible indicated by the placement of the de-ductible amount in the Schedule above. Thedeductible amount stated in the Scheduleabove applies as follows:

1. PER CLAIM BASIS. If the deductibleamount indicated in the Schedule aboveis on a per claim basis, that deductibleapplies under Liquor Liability Coverage,to all "injuries" sustained by any one per-son or organization.

2. PER COMMON CAUSE BASIS. If thedeductible amount indicated in theSchedule above is on a per commoncause basis, that deductible amount ap-plies under Liquor Liability Coverage to

all damages because of "injury" as theresult of the selling, serving or furnishingof any alcoholic beverage to any oneperson, regardless of the number of per-sons or organizations who sustain dam-ages.

C. The terms of this insurance, including thosewith respect to:

1. Our right and duty to defend the insuredagainst any "suit" seeking those dam-ages; and

2. Your duties in the event of an "injury",claim or "suit"

apply irrespective of the application of the de-ductible amount.

D. We may pay any part or all of the deductibleamount to effect settlement of any claims or"suit" and, upon notification of the actiontaken, you shall promptly reimburse us forsuch part of the deductible amount as hasbeen paid by us.

5,000


Includes copyrighted material of InsuranceGA 4206 IL 10 01 Services Office, Inc., with its permission.


ILLINOIS CHANGES - KNOWN INJURY OR DAMAGE


LIQUOR LIABILITY COVERAGE PART

Paragraph d. of SECTION I - LIQUOR LIABILITYCOVERAGE, 1. Insuring Agreement in the is de-leted in its entirety and replaced by the following:

d. You will be deemed to know that "injury"has occurred at the earliest time whenany "authorized representative":

(1) Reports all, or any part, of the "injury"to us or any other insurer;

(2) Receives a written or verbal demandor claim for damages because of the"injury";

(3) First observes the "injury";

(4) Becomes aware by any means otherthan as described in (3) above, that"injury" had occurred or had begunto occur; or

(5) Becomes aware of a condition fromwhich "injury" was substantially cer-tain to occur.


rence/rPer OccuAmount

$500$25,000

InsuranceInsuring Agreements Forming Part of This Coverage Part

Money Orders And Counterfeit Money5.

DeductibleLimit of

500$


5,000$Outside the Premises - Theft of Money and Securities4.

BER:M

500$

Attached to and forming part of POLICY NU

COVERAGE PART DECLARATIONS

25,000$

(EXPANDED COVERAGE PLUS)®

Inside the Premises - Theft of Money and Securities3.

XC+CRIME

500$

®CinciPlus

25,000$

A Stock Insurance Company

CINCINNATI INSURANCE COMPANY

Forgery or Alteration2.

THE

500$25,000$Employee Theft1.

Per OccurrenceCoverage Term

EPP 049 72 16

Forms and endorsements applicable to this Coverage Part at policy inception:CRIME EXPANDED COVERAGE (XC®) COVERAGE FORM (DISCOVERY FORM)CA102 08/07

) Coverage Form.®Coverage Expanded Coverage (XCCrimethe and form Declaration this of consists Part Coverage Plus) Coverage (Expanded ®XC+Crime The

CA 519 XCP 03 09 Page ofEPP 049 72 16 1 1


Includes copyrighted material of ISOCA 102 08 07 Properties, Inc., with their permission Page 1 of 12

CRIME EXPANDED COVERAGE (XC ® ) COVERAGE FORM

(DISCOVERY FORM)

Various provisions in this Coverage Part restrictcoverage. Read the entire Coverage Part carefullyto determine rights, duties and what is or is notcovered.

Throughout this Coverage Part the words "you"and "your" refer to the Named Insured shown inthe Declarations. The words "we", "us" and "our"refer to the Company providing this insurance.

Other words and phrases that appear in quotationmarks have special meaning. Refer to Section F.Definitions.

A. Insuring Agreements

Coverage is provided under the following In-suring Agreements for which a Limit of Insur-ance is shown in the Declarations and appliesto loss that you sustain resulting directly froman "occurrence" taking place at any timewhich is "discovered" by you during the PolicyPeriod shown in the Declarations or during theperiod of time provided in the Extended Pe-riod to Discover Loss Condition E.1.g.:

1. Employee Theft

We will pay for loss of or damage to"money", "securities" and "other property"resulting directly from "theft" committedby an "employee", whether identified ornot, acting alone or in collusion with otherpersons.

For the purposes of this Insuring Agree-ment, "theft" shall also include forgery.

2. Forgery or Alteration

a. We will pay for loss resulting directlyfrom "forgery" or alteration of checks,drafts, promissory notes, or similarwritten promises, orders or directionsto pay a sum certain in "money" thatare:

(1) Made or drawn by or drawnupon you; or

(2) Made or drawn by one acting asyour agent;

or that are purported to have beenso made or drawn.

For the purposes of this InsuringAgreement, a substitute check asdefined in the Check Clearing for the21st Century Act shall be treated thesame as the original it replaced.

b. If you are sued for refusing to payany instrument covered in Paragraph2.a., on the basis that it has beenforged or altered, and you have ourwritten consent to defend against thesuit, we will pay for any reasonablelegal expenses that you incur andpay in that defense. The amount thatwe will pay is in addition to the Limitof Insurance applicable to this In-suring Agreement.

3. Inside The Premises - Theft of Moneyand Securities

a. We will pay for loss of "money" and"securities" inside the "premises" or"banking premises":

(1) Resulting directly from "theft"committed by a person presentinside such "premises" or"banking premises"; or

(2) Resulting directly from disap-pearance or destruction.

b. We will pay for loss from damage tothe "premises" or its exterior result-ing directly from an actual or at-tempted "theft" of "money" and "se-curities", if you are the owner of the"premises" or are liable for damageto it.

c. We will pay for loss of or damage toa locked safe, vault, cash register,cash box or cash drawer located in-side the "premises" resulting directlyfrom an actual or attempted "theft" ofor unlawful entry into those contain-ers.

4. Outside the Premises - Theft of Moneyand Securities

We will pay for loss of "money" and "se-curities" outside the "premises" in thecare and custody of a "messenger" or anarmored motor vehicle company resultingdirectly from "theft", disappearance ordestruction.

5. Money Orders and Counterfeit Money

We will pay for loss resulting directly fromyour having accepted in good faith, in ex-change for merchandise, "money" orservices:



a. Money orders issued by any post of-fice, express company or bank thatare not paid upon presentation; or

b. "Counterfeit money" that is acquiredduring the regular course of busi-ness.

B. Limit of Insurance

1. The most we will pay for all loss resultingdirectly from an "occurrence" is the appli-cable Limit of Insurance shown in theDeclarations.

2. If any loss is covered under more thanone Insuring Agreement or Coverage, themost we will pay for such loss shall notexceed the largest Limit of Insuranceavailable under any one of those InsuringAgreements or Coverages.

3. The Limits of Insurance stated in theDeclarations are the most we will pay forall loss under any one Insuring Agree-ment or Coverage in any one "coverageterm", regardless of the number of "oc-currences".

The Limits of Insurance of this Coverage Partapply separately to each "coverage term".

C. Deductible

1. We will not pay for loss resulting directlyfrom an "occurrence" unless the amountof loss exceeds the Deductible Amountshown in the Declarations. We will thenpay the amount of loss in excess of theDeductible Amount, up to the Limit of In-surance.

2. In the event this insurance applies on anexcess basis per Paragraph (2)(c) inCondition E.1.k. Other Insurance, thenonly the single highest deductible will ap-ply to the loss.

D. Exclusions

1. This insurance does not cover:

a. Acts Committed by You, YourPartners or Your Members

Loss resulting from "theft" or anyother dishonest act committed by:

(1) You; or

(2) Any of your partners or "mem-bers";

whether acting alone or in collusionwith other persons.

b. Acts of Employees Learned of byYou Prior to the Policy Period

Loss caused by an "employee" if the"employee" had also committed"theft" or any other dishonest actprior to the effective date of this in-surance and you or any of your part-ners, "members", "managers", offi-cers, directors or trustees, not incollusion with the "employee",learned of that "theft" or dishonestact prior to the Policy Period shownin the Declarations.

c. Acts of Employees, Managers, Di-rectors, Trustees or Representa-tives

Loss resulting from "theft" or anyother dishonest act committed byany of your "employees", "manag-ers", directors, trustees or authorizedrepresentatives:

(1) Whether acting alone or in collu-sion with other persons; or

(2) While performing services foryou or otherwise;

except when covered under InsuringAgreement A.1.

d. Confidential Information

Loss resulting from:

(1) The unauthorized disclosure ofyour confidential information in-cluding, but not limited to, pat-ents, trade secrets, processingmethods or customer lists; or

(2) The unauthorized use or disclo-sure of confidential informationof another person or entitywhich is held by you including,but not limited to, financial in-formation, personal information,credit card information or similarnon-public information.

e. Governmental Action

Loss resulting from seizure or de-struction of property by order of gov-ernmental authority.

f. Indirect Loss

Loss that is an indirect result of an"occurrence" covered by this insur-ance including, but not limited to,loss resulting from:

(1) Your inability to realize incomethat you would have realizedhad there been no loss of or



damage to "money", "securities"or "other property".

(2) Payment of damages of anytype for which you are legally li-able. But, we will pay compen-satory damages arising directlyfrom a loss covered under thisinsurance.

(3) Payment of costs, fees or otherexpenses you incur in estab-lishing either the existence orthe amount of loss under this in-surance.

g. Legal Fees, Costs and Expenses

Fees, costs and expenses incurredby you which are related to any legalaction, except when covered underInsuring Agreement A.2.

h. Nuclear Hazard

Loss or damage resulting from nu-clear reaction or radiation or radioac-tive contamination, however caused.

i. Pollutants

Loss or damage caused by or re-sulting from pollutants. Pollutantsmean any solid, liquid, gaseous orthermal irritant or contaminant, in-cluding smoke, vapor, soot, fumes,acids, alkalis, chemicals, petroleumand petroleum by-products, andwaste. Waste includes materials tobe recycled, reconditioned or re-claimed. Pollutants include but arenot limited to substances which aregenerally recognized in industry orgovernment to be harmful or toxic topersons, property, or the environ-ment regardless of whether injury ordamage is caused directly or indi-rectly by the "pollutants" andwhether:

(1) You are regularly or otherwiseengaged in activities which taintor degrade the environment; or

(2) You use, generate or producethe pollutant.

j. War and Military Action

Loss or damage resulting from:

(1) War, including undeclared orcivil war;

(2) Warlike action by a militaryforce, including action in hin-dering or defending against anactual or expected attack, byany government, sovereign or

other authority using militarypersonnel or other agents; or

(3) Insurrection, rebellion, revolu-tion, usurped power, or actiontaken by governmental authorityin hindering or defendingagainst any of these.

2. Insuring Agreement A.1. does not cover:

a. Inventory Shortages

Loss, or that part of any loss, theproof of which as to its existence oramount is dependent upon:

(1) An inventory computation; or

(2) A profit and loss computation.

However, where you establish whollyapart from such computations thatyou have sustained a loss, then youmay offer your inventory records andactual physical count of inventory insupport of the amount of lossclaimed.

b. Trading

Loss resulting from trading, whetherin your name or in a genuine or ficti-tious account.

c. Warehouse Receipts

Loss resulting from the fraudulent ordishonest signing, issuing, cancellingor failing to cancel, a warehouse re-ceipt or any papers connected withit.

3. Insuring Agreements A.3. and A.4. do notcover:

a. Accounting or Arithmetical Errorsor Omissions

Loss resulting from accounting or ar-ithmetical errors or omissions.

b. Exchanges or Purchases

Loss resulting from the giving or sur-rendering of property in any ex-change or purchase.

c. Fire

Loss or damage resulting from fire,however caused, except:

(1) Loss of or damage to "money"and "securities"; and

(2) Loss from damage to a safe orvault.



d. Money operated Devices

Loss of property contained in anymoney operated device unless theamount of "money" deposited in it isrecorded by a continuous recordinginstrument in the device.

e. Motor Vehicles or Equipment andAccessories

Loss of or damage to motor vehicles,trailers or semi-trailers or equipmentand accessories attached to them.

f. Transfer or Surrender of Property

(1) Loss of or damage to propertyafter it has been transferred orsurrendered to a person orplace outside the "premises" or"banking premises":

(a) On the basis of unauthor-ized instructions;

(b) As a result of a threat to dobodily harm to any person;

(c) As a result of a threat to dodamage to any property;

(d) As a result of a threat to in-troduce a denial of serviceattack into your computersystem;

(e) As a result of a threat to in-troduce a virus or other ma-licious instruction into yourcomputer system which isdesigned to damage, de-stroy or corrupt data orcomputer programs storedwithin your computer sys-tem;

(f) As a result of a threat tocontaminate, pollute or ren-der substandard your prod-ucts or goods; or

(g) As a result of a threat todisseminate, divulge or util-ize:

(i) Your confidential infor-mation; or

(ii) Weaknesses in thesource code withinyour computer system.

(2) But, this Exclusion does not ap-ply under Insuring AgreementA.5. to loss of "money", "securi-ties" or "other property" whileoutside the "premises" in the

care and custody of a "messen-ger" if you:

(a) Had no knowledge of anythreat at the time the con-veyance began; or

(b) Had knowledge of a threatat the time the conveyancebegan, but the loss was notrelated to the threat.

g. Vandalism

Loss from damage to the "premises"or its exterior, or to any safe, vault,cash register, cash box, cash draweror "other property" by vandalism ormalicious mischief.

h. Voluntary Parting of Title to orPossession of Property

Loss resulting from your, or anyoneacting on your express or impliedauthority, being induced by any dis-honest act to voluntarily part with titleto or possession of any property.

E. Conditions

The following Conditions apply in addition tothe Common Policy Conditions:

1. Conditions Applicable to all InsuringAgreements

a. Additional Premises or Employees

If, while this insurance is in force, youestablish any additional "premises"or hire additional "employees", otherthan through consolidation or mergerwith, or purchase or acquisition ofassets or liabilities of, another entity,such "premises" and "employees"shall automatically be covered underthis insurance. Notice to us of an in-crease in the number of "premises"or "employees" need not be givenand no additional premium need bepaid for the remainder of the PolicyPeriod shown in the Declarations.

b. Concealment, Misrepresentationor Fraud

This insurance is void in any case offraud by you as it relates to this in-surance at any time. It is also void ifyou or any other Insured, at anytime, intentionally conceal or misrep-resent a material fact concerning:

(1) This insurance;

(2) The property covered under thisinsurance;



(3) Your interest in the propertycovered under this insurance; or

(4) A claim under this insurance.

c. Consolidation - Merger or Acquisi-tion

If you consolidate or merge with, orpurchase or acquire the assets or li-abilities of, another entity:

(1) You must give us written noticeas soon as possible and obtainour written consent to extendthe coverage provided by thisinsurance to such consolidatedor merged entity or such pur-chased or acquired assets or li-abilities. We may condition ourconsent by requiring payment ofan additional premium; but

(2) For the first 90 days after theeffective date of such consolida-tion, merger or purchase or ac-quisition of assets or liabilities,the coverage provided by thisinsurance shall apply to suchconsolidated or merged entity orsuch purchased or acquired as-sets or liabilities, provided thatall "occurrences" causing orcontributing to a loss involvingsuch consolidation, merger orpurchase or acquisition of as-sets or liabilities, must takeplace after the effective date ofsuch consolidation, merger orpurchase or acquisition of as-sets or liabilities.

d. Cooperation

You must cooperate with us in allmatters pertaining to this insuranceas stated in its terms and conditions.

e. Duties in the Event of Loss

After you "discover" a loss or a situa-tion that may result in loss of ordamage to "money", "securities" or"other property" you must:

(1) Notify us as soon as possible. Ifyou have reason to believe thatany loss (except for loss cov-ered under Insuring AgreementA.1. or A.2.) involves a violationof law, you must also notify thelocal law enforcement authori-ties.

(2) Submit to examination underoath at our request and give usa signed statement of your an-swers.

(3) Produce for our examination allpertinent records.

(4) Give us a detailed, sworn proofof loss within 120 days.

(5) Cooperate with us in the investi-gation and settlement of anyclaim.

f. Employee Benefit Plans

(1) The "employee benefit plans"(hereafter referred to as Plan)are included as Insureds underInsuring Agreement A.1.

(2) If any Plan is insured jointly withany other entity under this in-surance, you or the Plan Ad-ministrator must select a Limit ofInsurance for Insuring Agree-ment A.1. that is sufficient toprovide a Limit of Insurance foreach Plan that is at least equalto that required if each Planwere separately insured.

(3) With respect to loss sustained or"discovered" by any such Plan,Insuring Agreement A.1. is re-placed by the following:

We will pay for loss of or dam-age to "funds" and "other prop-erty" resulting directly fromfraudulent or dishonest actscommitted by an "employee",whether identified or not, actingalone or in collusion with otherpersons.

(4) If the first Named Insured is anentity other than a Plan, anypayment we make for loss sus-tained by any Plan will be madeto the Plan sustaining the loss.

(5) If two or more Plans are insuredunder this insurance, any pay-ment we make for loss:

(a) Sustained by two or morePlans; or

(b) Of commingled "funds" or"other property" of two ormore Plans;

resulting directly from an"occurrence" will be madeto each Plan sustaining lossin the proportion that theLimit of Insurance requiredfor each Plan bears to thetotal Limit of Insurance of allPlans sustaining loss.



(6) The Deductible Amount applica-ble to Insuring Agreement A.1.does not apply to loss sustainedby any Plan.

g. Extended Period to Discover Loss

We will pay for loss that you sus-tained prior to the effective date ofcancellation of this insurance, whichis "discovered" by you:

(1) No later than 60 days from thedate of that cancellation. How-ever, this extended period to"discover" loss terminates im-mediately upon the effectivedate of any other insurance ob-tained by you, whether from usor another insurer, replacing inwhole or in part the coverageafforded under this insurance,whether or not such other insur-ance provides coverage for losssustained prior to its effectivedate.

(2) No later than 1 year from thedate of that cancellation with re-gard to any "employee benefitplans".

h. Joint Insured

(1) If more than one Insured isnamed in the Declarations, thefirst Named Insured will act foritself and for every other Insuredfor all purposes of this insur-ance. If the first Named Insuredceases to be covered, then thenext Named Insured will be-come the first Named Insured.

(2) If any Insured, or partner,"member" or officer of that In-sured has knowledge of any in-formation relevant to this insur-ance, that knowledge is consid-ered knowledge of every In-sured.

(3) An "employee" of any Insured isconsidered to be an "employee"of every Insured.

(4) If this insurance or any of itscoverages is cancelled as toany Insured, loss sustained bythat Insured is covered only if itis "discovered" by you:

(a) No later than 60 days fromthe date of that cancellation.However, this extended pe-riod to "discover" loss ter-minates immediately upon

the effective date of anyother insurance obtained bythat Insured, whether fromus or another insurer, re-placing in whole or in partthe coverage afforded un-der this insurance, whetheror not such other insuranceprovides coverage for losssustained prior to its effec-tive date.

(b) No later than 1 year fromthe date of that cancellationwith regard to any "em-ployee benefit plans".

(5) We will not pay more for losssustained by more than one In-sured than the amount we wouldpay if all such loss had beensustained by one Insured.

(6) Payment by us to the firstNamed Insured for loss sus-tained by any Insured, otherthan an "employee benefit plan",shall fully release us on accountof such loss.

i. Legal Action Against Us

You may not bring any legal actionagainst us involving loss:

(1) Unless you have complied withall the terms of this insurance;

(2) Until 90 days after you have filedproof of loss with us; and

(3) Unless brought within 2 yearsfrom the date you "discovered"the loss.

If any limitation in this Conditionis prohibited by law, such limita-tion is amended so as to equalthe minimum period of limitationprovided by such law.

j. Liberalization

If, within 60 days prior to the begin-ning of this Coverage Part or duringthe policy period, we make anychanges to any forms or endorse-ments of this Coverage Part forwhich there is currently no separatepremium charge, and that changeprovides more coverage than thisCoverage Part, the change willautomatically apply to this CoveragePart as of the latter of:

a. The date we implemented thechange in your state; or



b. The date this Coverage Part be-came effective; and

will be considered as included untilthe end of the current policy period.We will make no additional premiumcharge for this additional coverageduring the interim.

k. Other Insurance

If other valid and collectible insur-ance is available to you for loss cov-ered under this insurance, our obli-gations are limited as follows:

(1) Primary Insurance

When this insurance is writtenas primary insurance, and:

(a) You have other insurancesubject to the same termsand conditions as this in-surance, issued by an in-surer other than us or aninsurer affiliated with us, wewill pay our share of thecovered loss. Our share isthe proportion that the ap-plicable Limit of Insuranceshown in the Declarationsbears to the total limit of allinsurance covering thesame loss.

(b) You have other insurance,issued by an insurer otherthan us or an insurer affili-ated with us, covering thesame loss other than thatdescribed in Paragraph(1)(a), we will only pay forthe amount of loss that ex-ceeds:

(i) The Limit of Insuranceand Deductible Amountof that other insurance,whether you can collecton it or not; or

(ii) The Deductible Amountshown in the Declara-tions;

whichever is greater. Our pay-ment for loss is subject to theterms and conditions of this in-surance.

(2) Excess Insurance

(a) When this insurance iswritten excess over otherinsurance issued by an in-surer other than us or aninsurer affiliated with us, we

will only pay for the amountof loss that exceeds theLimit of Insurance and De-ductible Amount of thatother insurance, whetheryou can collect on it or not.Our payment for loss issubject to the terms andconditions of this insurance.

(b) However, if loss coveredunder this insurance issubject to a Deductible, wewill reduce the DeductibleAmount shown in the Decla-rations, by the sum total ofall such other insurance is-sued by an insurer otherthan us or an insurer affili-ated with us, plus any De-ductible Amount applicableto that other insurance.

(c) This insurance is excess of,and applies in addition to,any similar or identical in-surance coverage providedby any other Coverage Partforming a part of the policyof insurance of which thisCoverage Part forms acomponent. However, thisinsurance will not apply tothat part of a loss fallingwithin any deductibleamount.

Paragraph (c) above su-persedes any competingOther Insurance Conditioncontained in any other Cov-erage Part issued by us.

l. Ownership of Property; InterestsCovered

The property covered under this in-surance is limited to property:

(1) That you own or lease; or

(2) That you hold for others whetheror not you are legally liable forthe loss of such property.

However, this insurance is for yourbenefit only. It provides no rights orbenefits to any other person or or-ganization. Any claim for loss that iscovered under this insurance mustbe presented by you.

m. Policy Bridge - Discovery Replac-ing Loss Sustained

(1) If this insurance replaces insur-ance that provided you with an



extended period of time aftercancellation in which to discoverloss and which did not terminateat the time this insurance be-came effective:

(a) We will not pay for any lossthat occurred during thePolicy Period of that priorinsurance which is "discov-ered" by you during theextended period to "dis-cover" loss, unless theamount of loss exceeds theLimit of Insurance and De-ductible Amount of that priorinsurance. In that case, wewill pay for the excess losssubject to the terms andconditions of this policy.

(b) However, any payment wemake for the excess losswill not be greater than thedifference between the Limitof Insurance and DeductibleAmount of that prior insur-ance and the Limit of Insur-ance shown in the Declara-tions. We will not apply theDeductible Amount shownin the Declarations to thisexcess loss.

(2) The Other Insurance ConditionE.1.k. does not apply to thisCondition.

n. Records

You must keep records of all prop-erty covered under this insurance sowe can verify the amount of any loss.

o. Recoveries

(1) Any recoveries, whether ef-fected before or after any pay-ment under this insurance,whether made by us or you,shall be applied net of the ex-pense of such recovery:

(a) First, to you in satisfactionof your covered loss in ex-cess of the amount paidunder this insurance;

(b) Second, to us in satisfactionof amounts paid in settle-ment of your claim;

(c) Third, to you in satisfactionof any Deductible Amount;and

(d) Fourth, to you in satisfactionof any loss not covered un-der this insurance.

(2) Recoveries do not include anyrecovery:

(a) From insurance, suretyship,reinsurance, security or in-demnity taken for our bene-fit; or

(b) Of original "securities" afterduplicates of them havebeen issued.

p. Territory

This insurance covers loss that yousustain resulting directly from an"occurrence" taking place within theUnited States of America (includingits territories and possessions),Puerto Rico and Canada.

q. Transfer of Your Rights of Recov-ery Against Others to Us

You must transfer to us all yourrights of recovery against any personor organization for any loss yousustained and for which we havepaid or settled. You must also doeverything necessary to securethose rights and do nothing after lossto impair them.

r. Valuation - Settlement

(1) The value of any loss for pur-poses of coverage under thispolicy shall be determined asfollows:

(a) Loss of "money" but only upto and including its facevalue. We will, at your op-tion, pay for loss of "money"issued by any country otherthan the United States ofAmerica:

(i) At face value in the"money" issued by thatcountry; or

(ii) In the United States ofAmerica dollar equiva-lent determined by therate of exchange pub-lished in The WallStreet Journal on theday the loss was "dis-covered".

(b) Loss of "securities" but onlyup to and including theirvalue at the close of busi-



ness on the day the losswas "discovered". We may,at our option:

(i) Pay the market value ofsuch "securities" or re-place them in kind, inwhich event you mustassign to us all yourrights, title and interestin and to those "securi-ties"; or

(ii) Pay the cost of anyLost Securities Bondrequired in connectionwith issuing duplicatesof the "securities".However, we will be li-able only for the pay-ment of so much of thecost of the bond aswould be charged for abond having a penaltynot exceeding thelesser of the:

i. Market value ofthe "securities" atthe close of busi-ness on the daythe loss was "dis-covered"; or

ii. The Limit of Insur-ance applicable tothe "securities".

(c) Loss of or damage to "otherproperty" or loss from dam-age to the "premises" or itsexterior for the replacementcost of the property withoutdeduction for depreciation.However, we will not paymore than the least of thefollowing:

(i) The cost to replace thelost or damaged prop-erty with property ofcomparable materialand quality and usedfor the same purpose;

(ii) The amount you actu-ally spend that is nec-essary to repair or re-place the lost or dam-aged property; or

(iii) The Limit of Insuranceapplicable to the lost ordamaged property.

With regard to Paragraphsr.(1)(c)(i) through

r.(1)(c)(iii), we will not payon a replacement cost basisfor any loss or damage:

i. Until the lost ordamaged propertyis actually repairedor replaced; and

ii. Unless the repairsor replacementare made as soonas reasonablypossible after theloss or damage.

If the lost or damagedproperty is not repaired orreplaced, we will pay on anactual cash value basis.

(2) We will, at your option, settleloss or damage to property otherthan "money":

(a) In the "money" of the coun-try in which the loss ordamage occurred; or

(b) In the United States ofAmerica dollar equivalent ofthe "money" of the countryin which the loss or damageoccurred determined by therate of exchange publishedin The Wall Street Journalon the day the loss was"discovered".

(3) Any property that we pay for orreplace becomes our property.

2. Conditions Applicable to InsuringAgreement A.1.

a. Termination as to Any Employee

This Insuring Agreement terminatesas to any "employee":

(1) As soon as:

(a) You; or

(b) Any of your partners,"members", "managers", of-ficers, directors or trusteesnot in collusion with the"employee";

learn of "theft" or any other dis-honest act committed by the"employee" whether before orafter becoming employed byyou.

(2) On the date specified in a noticemailed to the first Named In-



sured. That date will be at least30 days after the date of mailing.

We will mail or deliver our noticeto the first Named Insured's lastmailing address known to us. Ifnotice is mailed, proof of mailingwill be sufficient proof of notice.

b. Territory

We will pay for loss caused by any"employee" while temporarily outsidethe territory specified in the TerritoryCondition E.1.p. for a period of notmore than 90 consecutive days.


a. Deductible Amount

The Deductible Amount does notapply to legal expenses paid underInsuring Agreement A.2.

b. Electronic and Mechanical Signa-tures

We will treat signatures that are pro-duced or reproduced electronically,mechanically or by other means thesame as handwritten signatures.

c. Proof of Loss

You must include with your proof ofloss any instrument involved in thatloss, or, if that is not possible, an af-fidavit setting forth the amount andcause of loss.

d. Territory

We will cover loss that you sustainresulting directly from an "occur-rence" taking place anywhere in theworld. Territory Condition E.1.p. doesnot apply to Insuring Agreement A.2.


a. Armored Motor Vehicle Compa-nies

Under Insuring Agreement A.4., wewill only pay for the amount of lossyou cannot recover:

(1) Under your contract with the ar-mored motor vehicle company;and

(2) From any insurance or indem-nity carried by, or for the benefitof customers of, the armoredmotor vehicle company.

b. Special Limit of Insurance forSpecified Property

We will only pay up to the lesser of$5,000 or the Limit of insurance forany one "occurrence" of loss of ordamage to:

(1) Precious metals, precious orsemi-precious stones, pearls,furs, or completed or partiallycompleted articles made of orcontaining such materials thatconstitute the principal value ofsuch articles; or

(2) Manuscripts, drawings, or rec-ords of any kind, or the cost ofreconstructing them or repro-ducing any information con-tained in them.

F. Definitions

1. "Banking premises" means the interior ofthat portion of any building occupied by abanking institution or similar safe de-pository.

2. "Counterfeit money" means an imitationof "money" that is intended to deceiveand to be taken as genuine.

3. "Coverage term" means the following in-dividual increment, or if a multi-year pol-icy period, increments, of time, whichcomprise the policy period of this Cover-age Part:

a. The year commencing on the Effec-tive Date of this Coverage Part at12:01 AM standard time at yourmailing address shown in the Decla-rations, and if a multi-year policy pe-riod, each consecutive annual periodthereafter, or portion thereof if anyperiod is for a period of less than 12months, constitute individual "cover-age terms". The last "coverage term"ends at 12:00 AM standard time atyour mailing address shown in theDeclarations on the earlier of:

(1) The day the policy period shownin the Declarations ends; or

(2) The day the policy to which thisCoverage Part is attached isterminated or cancelled.

b. However, if after the issuance of thisCoverage Part, any "coverage term"is extended for an additional periodof less than 12 months, that addi-tional period of time will be deemedto be part of the last preceding "cov-erage term".



4. "Custodian" means you, or any of yourpartners or "members", or any "em-ployee" while having care and custody ofproperty inside the "premises", excludingany person while acting as a "watchper-son" or janitor.

5. "Discover" or "discovered" means thetime when you first become aware offacts which would cause a reasonableperson to assume that a loss of a typecovered by this insurance has been orwill be incurred, regardless of when theact or acts causing or contributing to suchloss occurred, even though the exactamount or details of loss may not then beknown.

"Discover" or "discovered" also meansthe time when you first receive notice ofan actual or potential claim in which it isalleged that you are liable to a third partyunder circumstances which, if true, wouldconstitute a loss under this insurance.

6. "Employee":

a. "Employee" means:

(1) Any natural person:

(a) While in your service andfor the first 30 days imme-diately after termination ofservice, unless such termi-nation is due to "theft" orany other dishonest actcommitted by the "em-ployee";

(b) Who you compensate di-rectly by salary, wages orcommissions; and

(c) Who you have the right todirect and control whileperforming services for you;

(2) Any natural person who is fur-nished temporarily to you:

(a) To substitute for a perma-nent "employee" as definedin Paragraph a.(1), who ison leave; or

(b) To meet seasonal or short-term work load conditions;

while that person is subject toyour direction and control andperforming services for you, ex-cluding, however, any such per-son while having care and cus-tody of property outside the"premises";

(3) Any natural person who isleased to you under a writtenagreement between you and alabor leasing firm, to performduties related to the conduct ofyour business, but does notmean a temporary employee asdefined in Paragraph a.(2);

(4) Any natural person who is:

(a) A trustee, officer, employee,administrator or manager,except an administrator ormanager who is an inde-pendent contractor, of any"employee benefit plan";and

(b) A director or trustee ofyours while that person isengaged in handling"funds" or "other property"of any "employee benefitplan";

(5) Any natural person who is aformer "employee", partner,"member", "manager", directoror trustee retained as a consult-ant while performing services foryou;

(6) Any natural person who is aguest student or intern pursuingstudies or duties, excluding,however, any such person whilehaving care and custody ofproperty outside the "premises";

(7) Any "employee" of an entitymerged or consolidated with youprior to the effective date of thisinsurance; or

(8) Any of your "managers", direc-tors or trustees while:

(a) Performing acts within thescope of the usual duties ofan "employee"; or

(b) Acting as a member of anycommittee duly elected orappointed by resolution ofyour board of directors orboard of trustees to performspecific, as distinguishedfrom general, directorialacts on your behalf.

b. "Employee" does not mean anyagent, broker, factor, commissionmerchant, consignee, independentcontractor or representative of thesame general character not specifiedin Paragraph 6.a.



7. "Employee benefit plan" means any wel-fare or pension benefit plan that yousponsor and which is subject to the Em-ployee Retirement Income Security Act of1974 (ERISA) and any amendmentsthereto.

8. "Forgery" means the signing of the nameof another person or organization withintent to deceive; it does not mean a sig-nature which consists in whole or in partof one's own name signed with or withoutauthority, in any capacity, for any pur-pose.

9. "Funds" means "money" and "securities".

10. "Manager" means a person serving in adirectorial capacity for a limited liabilitycompany.

11. "Member" means an owner of a limited li-ability company represented by its mem-bership interest, who also may serve as a"manager".

12. "Messenger" means you, or a relative ofyours, or any of your partners or "mem-bers", or any "employee" while havingcare and custody of property outside the"premises".

13. "Money" means:

a. Currency, coins and bank notes incurrent use and having a face value;and

b. Travelers checks, register checksand money orders held for sale tothe public.

14. "Occurrence" means:

a. Under Insuring Agreement A.1.:

(1) An individual act;

(2) The combined total of all sepa-rate acts whether or not related;or

(3) A series of acts whether or notrelated;

committed by an "employee" actingalone or in collusion with other per-sons, during the Policy Period shownin the Declarations, before such Pol-icy Period or both.

b. Under Insuring Agreement A.2.:

(1) An individual act;

(2) The combined total of all sepa-rate acts whether or not related;or

(3) A series of acts whether or notrelated;

committed by a person acting aloneor in collusion with other persons, in-volving one or more instruments,during the Policy Period shown in theDeclarations, before such Policy Pe-riod or both.

c. Under All Other Insuring Agree-ments:

(1) An individual act or event;

(2) The combined total of all sepa-rate acts or events whether ornot related; or

(3) A series of acts or eventswhether or not related;

committed by a person acting aloneor in collusion with other persons, ornot committed by any person, duringthe Policy Period shown in the Dec-larations, before such Policy Periodor both.

15. "Other property" means any tangibleproperty other than "money" and "securi-ties" that has intrinsic value. "Other prop-erty" does not include computer pro-grams, electronic data or any propertyspecifically excluded under this insur-ance.

16. "Premises" means the interior of that por-tion of any building you occupy in con-ducting your business.

17. "Securities" means negotiable and non-negotiable instruments or contracts rep-resenting either "money" or property andincludes:

a. Tokens, tickets, revenue and otherstamps (whether represented byactual stamps or unused value in ameter) in current use; and

b. Evidences of debt issued in connec-tion with credit or charge cards,which cards are not issued by you;

but does not include "money".

18. "Theft" means the unlawful taking ofproperty to the deprivation of the Insured.

19. "Watchperson" means any person youretain specifically to have care and cus-tody of property inside the "premises"and who has no other duties.


THE CINCINNATI INSURANCE COMPANYCINCINNATI, OHIO

BUSINESS AUTO COVERAGE PART DECLARATIONSITEM ONEAttached to and forming part of POLICY NUMBER:Named Insured is the same as it appears in the Common Policy Declarations.ITEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOSThis coverage part provides only those coverages where a premium or "incl" is shown in the premium column below. The limit of Insurance for each coverage listed is subject to all applicable policy provisions. Each of these coverages will apply only to those "autos" shown as covered "autos". "Autos" are shown as covered "autos" for a particularcoverage by the entry of one or more of the symbols from the COVERED AUTO Section of the Business AutoCoverage Form next to the name of the coverage.

COVERAGES

COVERED AUTOS(Entry of one or more

of the symbols from theCOVERED AUTOS

Section of the BusinessAuto Coverage Form

shows which autos arecovered autos)

LIMIT

THE MOST WE WILL PAY FOR ANY ONEACCIDENT OR LOSS

PREMIUM

LIABILITY $

PERSONAL INJURYPROTECTION(or equivalent No-fault coverage)

Separately stated in each P.I.P.endorsement minus $ Ded.

ADDED PERSONAL INJURYPROTECTION (or equivalentadded No-fault coverage)

Separately stated in each added P.I.P.endorsement

PROPERTY PROTECTIONINSURANCE (Michigan only)

Separately stated in each P. P.I.endorsement minus $ Dedfor each accident

AUTO. MEDICAL PAYMENTS$

UNINSURED MOTORISTS$

UNDERINSURED MOTORISTS(When not included inUninsured Motorists Coverage)

$

PHYSICAL DAMAGECOMPREHENSIVE COVERAGE

Actual cash value or cost of repair,Whichever is less minus $Ded. For each covered auto. But noDeductible applies to loss caused byFire or lightning. See Item Three for hired orborrowed "autos"

PHYSICAL DAMAGE SPECIFIEDCAUSES OF LOSS COVERAGE

Actual cash value or cost of repair,Whichever is less minus $ Ded. ForEach covered auto. For loss caused by mischief or vandalism. See Item Three for hired orborrowed "autos"

PHYSICAL DAMAGECOLLISION COVERAGE

Actual cash value or cost of repair,Whichever is less minus $Ded for each covered auto. See ItemThree for hired or borrowed "autos".

PHYSICAL DAMAGEINSURANCETOWING AND LABOR $ for each disablement of a

private passenger auto

PREMIUM FOR ENDORSEMENTS

*ESTIMATED TOTAL PREMIUM

EBA 049 72 16

8, 9 1,000,000 INCL

8, 91,000,000 INCL

8, 9SEE AA4183 INCL

INCL

FORMS AND ENDORSEMENTS CONTAINED IN THIS COVERAGE PART AT ITS INCEPTION:AUTOMOBILE SCHEDULEAA4183 02/06BUSINESS AUTO COVERAGE FORMAA101 03/06CHANGES - TOWING AND LABORAA2009 01/17CHANGES - AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGEAA296 07/12

Inc ludes copyrighted material of InsuranceAA 505 03 06 Services Office, Inc., with its permission. Page ofEBA 049 72 16 1 3


FORMS AND ENDORSEMENTS CONTAINED IN THIS COVERAGE PART AT ITS INCEPTION:ILLINOIS UNINSURED MOTORISTS COVERAGEAA4044IL 01/15ILLINOIS UNDERINSURED MOTORISTS COVERAGEAA4045IL 11/08ILLINOIS CHANGESAA4136IL 01/15UNINSURED/UNDERINSURED MOTORISTS PROTECTION OPTION SELECTION FORM - ILLINOIS

AA4168IL 01/15

OFFICE OF FOREIGN ASSETS CONTROL (OFAC) COMPLIANCE ENDORSEMENTAA4263IL 04/10ILLINOIS CHANGES - CANCELLATION AND NONRENEWALCA0270 08/94

* This policy may be subject to final audit



QUICK REFERENCECOMMERCIAL AUTO COVERAGE PART

BUSINESS AUTO COVERAGE FORMREAD YOUR POLICY CAREFULLY

DECLARATIONS PAGES

Named Insured and Mailing AddressPolicy PeriodDescription of BusinessCoverages and Limits of Insurance

SECTION I - COVERED AUTOS Beginning on Page

Description of Covered Auto Designation Symbols.............................................................................1Owned Autos You Acquire After the Policy Begins .............................................................................1Certain Trailers, Mobile Equipment andTemporary Substitute Autos............................................................................................................... 2

SECTION II - LIABILITY COVERAGE

Coverage............................................................................................................................................ 2Who is an Insured .............................................................................................................................. 2Coverage Extensions

Supplementary Payments........................................................................................................... 2Out of State................................................................................................................................. 3

Exclusions .......................................................................................................................................... 3Limit of Insurance............................................................................................................................... 5

SECTION III - PHYSICAL DAMAGE COVERAGE

Coverage............................................................................................................................................ 7Exclusions .......................................................................................................................................... 7Limit of Insurance............................................................................................................................... 8Deductible............................................................................................................................................8

SECTION IV - BUSINESS AUTO CONDITIONS

Loss ConditionsAppraisal for Physical Damage Loss .......................................................................................... 9Duties in the Event of Accident, Claim, Suit or Loss................................................................... 9Legal Action Against Us..............................................................................................................9Loss Payment - Physical Damage Coverages............................................................................ 9Transfer of Rights of Recovery Against Others to Us............................................................... 10

General ConditionsBankruptcy................................................................................................................................ 10Concealment, Misrepresentation or Fraud................................................................................ 10Liberalization ............................................................................................................................. 10No Benefit to Bailee - Physical Damage Coverages................................................................. 10Other Insurance ........................................................................................................................ 10Premium Audit........................................................................................................................... 10Policy Period, Coverage Territory ............................................................................................. 10Two or More Coverage Forms or Policies Issued by Us........................................................... 11

SECTION V - DEFINITIONS ................................................................................................................... 11

COMMON POLICY CONDITIONSCancellationChangesExamination of Your Books and RecordsInspections and SurveysPremiumsTransfer of Your Rights and Duties under this Policy

ENDORSEMENTS (If Any)



AUTOMOBILE SCHEDULE

ITEM

Attached to and forming a part of Policy Number , effective

The insurance afforded for any automobile is only with respects to such and so many of the coverages as are

indicated by specific premium charge or charges indicated.

POLICY LIMITSState:

Bodily Injury: Property Damage:

THREE

EBA 049 72 16 07-20-2019

IL1,000,000 CSL INCLUDED

UM/UIM: 1,000,000

Veh.No. Vehicle Information

Class: TerritoryColl Ded:

BI PD MP OTC COLL UM

HIRED AND NON-OWNEDOTC-COMP DED: N/A N/A

78 INCL N/A 31TOTAL

109

SYMBOLS:BI -- Bodily Injury SPEC -- Specified PerilsPD -- Property Damage COLL -- CollisionMP -- Medical Payments UM -- Uninsured MotoristsOTC -- Other Than Collision (ACV Coverage applies UIM -- Underinsured Motorists

unless Stated Amount Value is indicated) PIP -- Personal Injury ProtectionCAC -- Combined Additional Coverage T&L -- Towing and Labor CostsFT&S -- Fire, Theft, and Supplemental RR -- Rental Reimbursement

AA 4183 02 06 Page of 1 1


Includes copyrighted material of InsuranceAA 101 03 06 Services Office, Inc., with its permission. Page 1 of 14

BUSINESS AUTO COVERAGE FORM

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, dutiesand what is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. Thewords "we", "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION V -DEFINITIONS.

SECTION I - COVERED AUTOS

ITEM TWO of the Declarations shows the "autos"that are covered "autos" for each of your cover-ages. The following numerical symbols describethe "autos" that may be covered "autos". Thesymbols entered next to a coverage on the Decla-rations designate the only "autos" that are covered"autos".

A. Description of Covered Auto DesignationSymbols

SYMBOL DESCRIPTION

1 = ANY "AUTO".

2 = OWNED "AUTOS" ONLY. Only those"autos" you own (and for Liability Cover-age any "trailers" you don't own while at-tached to power units you own). This in-cludes those "autos" you acquire owner-ship of after the policy begins.

3 = OWNED PRIVATE PASSENGER"AUTOS" ONLY. Only the private pas-senger "autos" you own. This includesthose private passenger "autos" you ac-quire ownership of after the policy begins.

4 = OWNED "AUTOS" OTHER THAN PRI-VATE PASSENGER "AUTOS" ONLY.Only those "autos" you own that are notof the private passenger type (and for Li-ability Coverage any "trailers" you don'town while attached to power units youown). This includes those "autos" not ofthe private passenger type you acquireownership of after the policy begins.

5 = OWNED "AUTOS" SUBJECT TO NO-FAULT. Only those "autos" you own thatare required to have No-Fault benefits inthe state where they are licensed or prin-cipally garaged. This includes those"autos" you acquire ownership of afterthe policy begins provided they are re-quired to have No-Fault benefits in thestate where they are licensed or princi-pally garaged.

6 = OWNED "AUTOS" SUBJECT TO ACOMPULSORY UNINSURED MOTOR-ISTS LAW. Only those "autos" you ownthat because of the law in the state where

they are licensed or principally garagedare required to have and cannot rejectUninsured Motorists Coverage. This in-cludes those "autos" you acquire owner-ship of after the policy begins providedthey are subject to the same state unin-sured motorists requirement.

7 = SPECIFICALLY DESCRIBED "AUTOS".Only those "autos" described in ITEMTHREE of the Declarations for which apremium charge is shown (and for Liabil-ity Coverage any "trailers" you don't ownwhile attached to a power unit describedin ITEM THREE).

8 = HIRED "AUTOS" ONLY. Only those"autos" you lease, hire, rent or borrow.This does not include any "auto" youlease, hire, rent, or borrow from any ofyour "employees" or partners (if you are apartnership), members (if you are a lim-ited liability company) or members of theirhouseholds.

9 = NONOWNED "AUTOS" ONLY. Onlythose "autos" you do not own, lease, hire,rent or borrow that are used in connec-tion with your business. This includes"autos" owned by your "employees",partners (if you are a partnership), mem-bers (if you are a limited liability com-pany), or members of their householdsbut only while used in your business oryour personal affairs.

B. Owned Autos You Acquire After the PolicyBegins

1. If Symbols 1, 2, 3, 4, 5, or 6 are enterednext to a coverage in ITEM TWO of theDeclarations, then you have coverage for"autos" that you acquire of the type de-scribed for the remainder of the policy pe-riod.

2. But, if Symbol 7 is entered next to a cov-erage in ITEM TWO of the Declarations,an "auto" you acquire will be a covered"auto" for that coverage only if:

a. We already cover all "autos" that youown for that coverage or it replaces



an "auto" you previously owned thathad that coverage; and

b. You tell us within 30 days after youacquire it that you want us to cover itfor that coverage.

C. Certain Trailers, Mobile Equipment andTemporary Substitute Autos

If Liability Coverage is provided by this Cov-erage Form, the following types of vehiclesare also covered "autos" for Liability Cover-age:

1. "Trailers" with a load capacity of 2,000pounds or less designed primarily fortravel on public roads.

2. "Mobile equipment" while being carried ortowed by a covered "auto".

3. Any "auto" you do not own while usedwith the permission of its owner as atemporary substitute for a covered "auto"you own that is out of service because ofits:

a. Breakdown;

b. Repair;

c. Servicing;

d. "Loss"; or

e. Destruction.

SECTION II - LIABILITY COVERAGE

A. Coverage

We will pay all sums an "insured" legally mustpay as damages because of "bodily injury" or"property damage" to which this insuranceapplies, caused by an "accident" and resultingfrom the ownership, maintenance or use of acovered "auto".

We will also pay all sums an "insured" legallymust pay as a "covered pollution cost or ex-pense" to which this insurance applies,caused by an "accident" and resulting fromthe ownership, maintenance or use of cov-ered "autos". However, we will only pay for the"covered pollution cost or expense" if there iseither "bodily injury" or "property damage" towhich this insurance applies that is caused bythe same "accident".

We have the right and duty to defend any "in-sured" against a "suit" asking for such dam-ages or a "covered pollution cost or expense".However, we have no duty to defend any "in-sured" against a "suit" seeking damages for"bodily injury" or "property damage" or a "cov-ered pollution cost or expense" to which thisinsurance does not apply. We may investigateand settle any claim or "suit" as we considerappropriate. Our duty to defend or settle endswhen the Liability Coverage Limit of Insurancehas been exhausted by payment of judg-ments or settlements.

1. Who is an Insured

The following are "insureds":

a. You for any covered "auto".

b. Anyone else while using with yourpermission a covered "auto" youown, hire or borrow except:

(1) The owner or anyone else fromwhom you hire or borrow a cov-

ered "auto". This exception doesnot apply if the covered "auto" isa "trailer" connected to a cov-ered "auto" you own.

(2) Your "employee" if the covered"auto" is owned by that "em-ployee" or a member of his orher household.

(3) Someone using a covered"auto" while he or she is workingin a business of selling, servic-ing, repairing, parking or storing"autos" unless that business isyours.

(4) Anyone other than your "em-ployees", partners (if you are apartnership), members (if youare a limited liability company),or a lessee or borrower or any oftheir "employees", while movingproperty to or from a covered"auto".

(5) A partner (if you are a partner-ship), or a member (if you are alimited liability company), for acovered "auto" owned by him orher or a member of his or herhousehold.

c. Anyone liable for the conduct of an"insured" described above but onlyto the extent of that liability.


a. Supplementary Payments

We will pay for the "insured":

(1) All expenses we incur.

(2) Up to $2,000 for the cost of bailbonds (including bonds for re-lated traffic law violations) re-



quired because of an "accident"we cover. We do not have tofurnish these bonds.

(3) The cost of bonds to releaseattachments in any "suit" againstthe "insured" we defend, butonly for bond amounts within ourLimit of Insurance.

(4) All reasonable expenses in-curred by the "insured" at ourrequest, including actual loss ofearnings up to $250 a day be-cause of time off from work.

(5) All costs taxed against the "in-sured" in any "suit" against the"insured" we defend.

(6) All interest on the full amount ofany judgment that accrues afterentry of the judgment in any"suit" against the "insured" wedefend, but our duty to pay in-terest ends when we have paid,offered to pay or deposited incourt the part of the judgmentthat is within our Limit of Insur-ance.

These payments will not reduce theLimit of Insurance.

b. Out-of-State Coverage Extensions

While a covered "auto" is away fromthe state where it is licensed we will:

(1) Increase the Limit of Insurancefor Liability Coverage to meetthe limits specified by a compul-sory or financial responsibilitylaw of the jurisdiction where thecovered "auto" is being used.This extension does not apply tothe limit or limits specified byany law governing motor carri-ers of passengers or property.

(2) Provide the minimum amountsand types of other coverages,such as no-fault, required of out-of-state vehicles by the jurisdic-tion where the covered "auto" isbeing used.

We will not pay anyone more thanonce for the same elements of lossbecause of these extensions.

B. Exclusions

This insurance does not apply to any of thefollowing:

1. Expected or Intended Injury

"Bodily injury" or "property damage"which may reasonably be expected to re-sult from the intentional or criminal acts ofthe "insured" or which is in fact expectedor intended by the "insured", even if theinjury or damage is of a different degreeor type than actually expected or in-tended. This exclusion does not apply to"bodily injury" resulting from the use ofreasonable force to protect persons orproperty.

2. Contractual

Liability assumed under any contract oragreement.

But this exclusion does not apply to liabil-ity for damages:

a. Assumed in a contract or agreementthat is an "insured contract" providedthe "bodily injury" or "property dam-age" occurs subsequent to the exe-cution of the contract or agreement;or

b. That the "insured" would have in theabsence of the contract or agree-ment.

3. Workers' Compensation

Any obligation for which the "insured" orthe "insured's" insurer may be held liableunder any workers' compensation, dis-ability benefits or unemployment com-pensation law or any similar law.

4. Employee Indemnification and Em-ployer's Liability

"Bodily injury" to:

a. An "employee" of the "insured" sus-tained in the "workplace";

b. An "employee" of the "insured" aris-ing out of the performance of dutiesrelated to the conduct of the "in-sured's" business; or

c. The spouse, child, parent, brother orsister of that "employee" as a conse-quence of Paragraph a. or b. above.

This Exclusion applies:

(1) Whether the "insured" may beliable as an employer or in anyother capacity; and

(2) To any obligation to share dam-ages with or repay someoneelse who must pay damagesbecause of the injury.



But this exclusion does not apply to "bod-ily injury" to domestic "employees" notentitled to workers' compensation bene-fits or to liability assumed by the "insured"under an "insured contract" other than acontract or agreement with a labor leas-ing firm. For the purposes of the Cover-age Form, a domestic "employee" is aperson engaged in household or domes-tic work performed principally in connec-tion with a residence premises.

5. Fellow Employee

"Bodily injury" to any fellow "employee" ofthe "insured" arising out of and in thecourse of the fellow "employee's" em-ployment or while performing duties re-lated to the conduct of your business.

6. Care, Custody or Control

"Property damage" to or "covered pollu-tion cost or expense" involving propertyowned or transported by the "insured" orin the "insured's" care, custody or control.But this exclusion does not apply to liabil-ity assumed under a sidetrack agree-ment.

7. Handling of Property

"Bodily injury" or "property damage" re-sulting from the handling of property:

a. Before it is moved from the placewhere it is accepted by the "insured"for movement into or onto the cov-ered "auto"; or

b. After it is moved from the covered"auto" to the place where it is finallydelivered by the "insured".

8. Movement of Property by MechanicalDevice

"Bodily injury" or "property damage" re-sulting from the movement of property bya mechanical device (other than a handtruck) unless the device is attached to thecovered "auto".

9. Operations

"Bodily injury" or "property damage" aris-ing out of the operation of:

a. Any equipment listed in Paragraphs6.b. and 6.c. of the definition of "mo-bile equipment"; or

b. Machinery or equipment that is on,attached to, or part of, a land vehiclethat would qualify under the definitionof "mobile equipment" if it were notsubject to a compulsory or financialresponsibility law or other motor ve-

hicle insurance law where it is li-censed or principally garaged.

10. Completed Operations

"Bodily injury" or "property damage" aris-ing out of your work after that work hasbeen completed or abandoned.

In this exclusion, your work means:

a. Work or operations performed byyou or on your behalf; and

b. Materials, parts or equipment fur-nished in connection with such workor operations.

Your work includes warranties or repre-sentations made at any time with respectto the fitness, quality, durability or per-formance of any of the items included inParagraphs a. or b. above.

Your work will be deemed completed atthe earliest of the following times:

(1) When all of the work called for inyour contract has been com-pleted.

(2) When all of the work to be doneat the site has been completed ifyour contract calls for work atmore than one site.

(3) When that part of the work doneat a job site has been put to itsintended use by any person ororganization other than anothercontractor or subcontractorworking on the same project.

Work that may need service, mainte-nance, correction, repair or replacement,but which is otherwise complete, will betreated as completed.

11. Pollutant

"Bodily injury" or "property damage" aris-ing out of the actual, alleged or threat-ened discharge, dispersal, seepage, mi-gration, release, escape or emission of"pollutants":

a. That are, or that are contained in anyproperty that is:

(1) Being transported or towed by,handled, or handled for move-ment into, onto or from, the cov-ered "auto";

(2) Otherwise in the course of tran-sit by or on behalf of the "in-sured"; or



(3) Being stored, disposed of,treated or processed in or uponthe covered "auto";

b. Before the "pollutants" or any prop-erty in which the "pollutants" arecontained are moved from the placewhere they are accepted by the "in-sured" for movement into or onto thecovered "auto"; or

c. After the "pollutants" or any propertyin which the "pollutants" are con-tained are moved from the covered"auto" to the place where they are fi-nally delivered, disposed of or aban-doned by the "insured".

Paragraph a. of this exclusion does notapply to fuels, lubricants, fluids, exhaustgases or other similar "pollutants" that areneeded for or result from the normalelectrical, hydraulic or mechanical func-tioning of the covered "auto" or its parts,if:

(1) The "pollutants" escape, seep,migrate, or are discharged, dis-persed or released directly froman "auto" part designed by itsmanufacturer to hold, store, re-ceive or dispose of such "pollut-ants"; and

(2) The "bodily injury", "propertydamage" or "covered pollutioncost or expense" does not ariseout of the operation of anyequipment listed in Paragraphs6.b. and 6.c. of the definition of"mobile equipment".

However, this exception to Paragraph a.does not apply if the fuels, lubricants, flu-ids, exhaust gases or other similar "pol-lutants" are intentionally discharged, dis-persed or released.

Paragraphs b. and c. of this exclusion donot apply to "accidents" that occur awayfrom premises owned by or rented to an"insured" with respect to "pollutants" notin or upon a covered "auto" if:

(1) The "pollutants" or any propertyin which the "pollutants" arecontained are upset, overturnedor damaged as a result of themaintenance or use of a cov-ered "auto"; and

(2) The discharge, dispersal, seep-age, migration, release, emis-sion or escape of the "pollut-ants" is caused directly by suchupset, overturn or damage.

d. At or from any premises, site or loca-tion on which any insured or anycontractors or subcontractors work-ing directly or indirectly on any in-sured's behalf are performing opera-tions:

(1) If the "pollutants" are brought onor to the premises, site or loca-tion in connection with such op-erations by such "insured", con-tractor or subcontractor; or

(2) If the operations are to test for,monitor, clean up, remove,contain, treat, detoxify or neu-tralize, or in any way respond to,or assess the effects of "pollut-ants".

Subparagraph d.(1) does not apply to"bodily injury" or "property damage" aris-ing out of the escape of fuels, lubricantsor other operating fluids which areneeded to perform the normal electrical,hydraulic or mechanical functions neces-sary for the operation of "mobile equip-ment" or its parts, if such fuels, lubricantsor other operating fluids escape from avehicle part designed to hold, store or re-ceive them. This exception does not ap-ply if the fuels, lubricants or other operat-ing fluids are intentionally discharged,dispersed or released, or if such fuels, lu-bricants or other operating fluids arebrought on or to the premises, site or lo-cation with the intent to be discharged,dispersed or released as part of the op-erations being performed by such "in-sured", contractor or subcontractor.

12. War

"Bodily injury" or "property damage" aris-ing directly or indirectly out of:

a. War, including undeclared or civilwar;

b. Warlike action by a military force, in-cluding action in hindering or de-fending against an actual or ex-pected attack, by any government,sovereign or other authority usingmilitary personnel or other agents; or

c. Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hinderingor defending against any of these.

13. Racing

Covered "autos" while used in any pro-fessional or organized racing or demoli-tion contest or stunting activity, or whilepracticing for such contest or activity. This



insurance also does not apply while thatcovered "auto" is being prepared for sucha contest or activity.

C. Limit of Insurance

Regardless of the number of covered "autos","insureds", premiums paid, claims made orvehicles involved in the "accident", the mostwe will pay for the total of all damages and"covered pollution cost or expense" com-bined, resulting from any one "accident" is theLimit of Insurance for Liability Coverageshown in the Declarations.

All "bodily injury", "property damage" and"covered pollution cost or expense" resultingfrom continuous or repeated exposure to sub-stantially the same conditions will be consid-ered as resulting from one "accident".

No one will be entitled to receive duplicatepayments for the same elements of "loss" un-der this Coverage Form and any MedicalPayments Coverage endorsement, UninsuredMotorists Coverage endorsement or Underin-sured Motorists Coverage endorsement at-tached to this Coverage Part.

D. Mobile Equipment Subject to Motor VehicleInsurance Laws

As respects SECTION II - LIABILITY COV-ERAGE any land vehicle, which would qualifyas "mobile equipment", except that it is sub-ject to a compulsory or financial responsibilitylaw or other motor vehicle insurance lawwhere it is licensed or principally garaged, isconsidered a covered "auto" under SECTIONII - LIABILITY COVERAGE, irrespective of theAuto Designation Symbols shown for SEC-TION II - LIABILITY COVERAGE in the Decla-rations.

SECTION III - PHYSICAL DAMAGE COVERAGE

A. Coverage

1. We will pay for "loss" to a covered "auto"or its equipment under:

a. Comprehensive Coverage

From any cause except:

(1) The covered "auto's" collisionwith another object; or

(2) The covered "auto's" overturn.

b. Specified Causes of Loss Cover-age

Caused by:

(1) Fire, lightning or explosion;

(2) Theft;

(3) Windstorm, hail or earthquake;

(4) Flood;

(5) Mischief or vandalism; or

(6) The sinking, burning, collision orderailment of any conveyancetransporting the covered "auto".

c. Collision Coverage

Caused by:

(1) The covered "auto's" collisionwith another object; or

(2) The covered "auto's" overturn.

2. Towing

We will pay up to the limit shown in theDeclarations for towing and labor costs

incurred each time a covered "auto" ofthe private passenger type is disabled.However, the labor must be performed atthe place of disablement.

3. Glass Breakage - Hitting a Bird orAnimal - Falling Objects or Missiles

If you carry Comprehensive Coverage forthe damaged covered "auto", we will payfor the following under ComprehensiveCoverage:

a. Glass breakage;

b. "Loss" caused by hitting a bird oranimal; and

c. "Loss" caused by falling objects ormissiles.

However, you have the option of havingglass breakage caused by a covered"auto's" collision or overturn considered a"loss" under Collision Coverage.


a. Transportation Expenses

We will also pay up to $20 per day toa maximum of $600 for temporarytransportation expense incurred byyou because of the total theft of acovered "auto" of the private pas-senger type. We will pay only forthose covered "autos" for which youcarry either Comprehensive orSpecified Causes of Loss Coverage.We will pay for temporary transporta-tion expenses incurred during theperiod beginning 48 hours after thetheft and ending, regardless of thepolicy's expiration, when the covered



"auto" is returned to use or we payfor its "loss".

b. Loss of Use Expenses

For Hired Auto Physical Damage, wewill pay expenses for which an "in-sured" becomes legally responsibleto pay for loss of use of a vehiclerented or hired without a driver, un-der a written rental contract oragreement. We will pay for loss ofuse expenses if caused by:

(1) Other than collision only if theDeclarations indicate that Com-prehensive Coverage is pro-vided for any covered "auto";

(2) Specified Causes of Loss only ifthe Declarations indicate thatSpecified Causes of Loss Cov-erage is provided for any cov-ered "auto"; or

(3) Collision only if the Declarationsindicate that Collision Coverageis provided for any covered"auto".

However, the most we will pay forany expenses for loss of use is $20per day, to a maximum of $600.

B. Exclusions

1. We will not pay for "loss" caused by orresulting from any of the following. Such"loss" is excluded regardless of any othercause or event that contributes concur-rently or in any sequence to the "loss".

a. Nuclear Hazard

(1) The explosion of any weaponemploying atomic fission or fu-sion; or

(2) Nuclear reaction or radiation, orradioactive contamination, how-ever caused.

b. War or Military Action

(1) War, including undeclared orcivil war;

(2) Warlike action by a militaryforce, including action in hin-dering or defending against anactual or expected attack, byany government, sovereign orother authority using militarypersonnel or other agents; or

(3) Insurrection, rebellion, revolu-tion, usurped power or actiontaken by governmental authority

in hindering or defendingagainst any of these.

2. We will not pay for "loss" to any covered"auto" while used in any professional ororganized racing or demolition contest orstunting activity, or while practicing forsuch contest or activity. We will also notpay for "loss" to any covered "auto" whilethat covered "auto" is being prepared forsuch a contest or activity.

3. We will not pay for "loss" caused by orresulting from any of the following unlesscaused by other "loss" that is covered bythis insurance:

a. Wear and tear, freezing, mechanicalor electrical breakdown; or

b. Blowouts, punctures or other roaddamage to tires.

4. We will not pay for "loss" to any of thefollowing:

a. Tapes, records, discs or other similaraudio, visual or data electronic de-vices designed for use with audio,visual or data electronic equipment.

b. Any device designed or used to de-tect speed measuring equipmentsuch as radar or laser detectors andany jamming apparatus intended toelude or disrupt speed measurementequipment.

c. Any electronic equipment, withoutregard to whether this equipment ispermanently installed, that receivesor transmits audio, visual or datasignals and that is not designedsolely for the reproduction of sound.

d. Any accessories used with the elec-tronic equipment described in Para-graph c. above.

Exclusions 4.c. and 4.d. do not apply to:

a. Equipment designed solely for thereproduction of sound and accesso-ries used with such equipment, pro-vided such equipment is perma-nently installed in the covered "auto"at the time of the "loss" or suchequipment is removable from ahousing unit which is permanentlyinstalled in the covered "auto" at thetime of the "loss", and such equip-ment is designed to be solely oper-ated by use of the power from the"auto's" electrical system, in or uponthe covered "auto"; or

b. Any other electronic equipment thatis:



(1) Necessary for the normal op-eration of the covered "auto" orthe monitoring of the covered"auto's" operating system; or

(2) An integral part of the same unithousing any sound reproducingequipment described in Para-graph a. above and permanentlyinstalled in the opening of thedash or console of the covered"auto" normally used by themanufacturer for installation of aradio.

5. We will not pay for "loss" to a covered"auto" due to "diminution in value".

C. Limit of Insurance

1. The most we will pay for "loss" in any one"accident" is the lesser of:

a. The actual cash value of the dam-aged or stolen property as of thetime of the "loss"; or

b. The cost of repairing or replacing thedamaged or stolen property withother property of like kind and qual-ity.

2. An adjustment for depreciation andphysical condition will be made in deter-mining actual cash value in the event of atotal "loss".

3. If a repair or replacement results in betterthan like kind or quality, we will not payfor the amount of the betterment.

D. Deductible

For each covered "auto", our obligation to payfor, repair, return or replace damaged or sto-len property will be reduced by the applicabledeductible shown in the Declarations. AnyComprehensive Coverage deductible shownin the Declarations does not apply to "loss"caused by fire or lightning.

SECTION IV - BUSINESS AUTO CONDITIONS

The following conditions apply in addition to theCommon Policy Conditions:

A. Loss Conditions

1. Appraisal for Physical Damage Loss

If you and we disagree on the amount of"loss", either may demand an appraisal ofthe "loss". In this event, each party willselect a competent appraiser. The twoappraisers will select a competent andimpartial umpire. The appraisers will stateseparately the actual cash value andamount of "loss". If they fail to agree, theywill submit their differences to the umpire.A decision agreed to by any two will bebinding. Each party will:


b. Bear the other expenses of the ap-praisal and umpire equally.

If we submit to an appraisal, we will stillretain our right to deny the claim.

2. Duties in the Event of Accident, Claim,Suit or Loss

We have no duty to provide coverageunder this policy unless there has beenfull compliance with the following duties:

a. In the event of "accident", claim,"suit" or "loss", you must give us orour authorized representative promptnotice of the "accident" or "loss". In-clude:

(1) How, when and where the "ac-cident" or "loss" occurred;

(2) The "insured's" name and ad-dress; and

(3) To the extent possible, thenames and addresses of anyinjured persons and witnesses.

b. Additionally, you and any other in-volved "insured" must:

(1) Assume no obligation, make nopayment or incur no expensewithout our consent, except atthe "insured's" own cost.

(2) Immediately send us copies ofany request, demand, order, no-tice, summons or legal paperreceived concerning the claim or"suit".

(3) Cooperate with us in the investi-gation or settlement of the claimor defense against the "suit".

(4) Authorize us to obtain medicalrecords or other pertinent infor-mation.

(5) Submit to examination, at ourexpense, by physicians of ourchoice, as often as we reasona-bly require.



c. If there is "loss" to a covered "auto"or its equipment you must also dothe following:

(1) Promptly notify the police if thecovered "auto" or any of itsequipment is stolen.

(2) Take all reasonable steps toprotect the covered "auto" fromfurther damage. Also keep a re-cord of your expenses for con-sideration in the settlement ofthe claim.

(3) Permit us to inspect the covered"auto" and records proving the"loss" before its repair or dispo-sition.

(4) Agree to examinations underoath at our request and give usa signed statement of your an-swers.


No one may bring a legal action againstus under this Coverage Form until:

a. There has been full compliance withall the terms of this Coverage Form;and

b. Under Liability Coverage, we agreein writing that the "insured" has anobligation to pay or until the amountof that obligation has finally beendetermined by judgment after trial.No one has the right under this pol-icy to bring us into an action to de-termine the "insured's" liability.

4. Loss Payment - Physical DamageCoverages

At our option we may:

a. Pay for, repair or replace damagedor stolen property;

b. Return the stolen property, at ourexpense. We will pay for any dam-age that results to the "auto" from thetheft; or

c. Take all or any part of the damagedor stolen property at an agreed orappraised value.

If we pay for the "loss", our payment willinclude the applicable sales tax for thedamaged or stolen property.


If any person or organization to or forwhom we make payment under this Cov-

erage Form has rights to recover dam-ages from another, those rights aretransferred to us. That person or organi-zation must do everything necessary tosecure our rights and must do nothingafter "accident" or "loss" to impair them.

B. General Conditions

1. Bankruptcy

Bankruptcy or insolvency of the "insured"or the "insured's" estate will not relieve usof any obligations under this CoverageForm.

2. Concealment, Misrepresentation orFraud

This Coverage Form is void in any caseof fraud by you at any time as it relates tothis Coverage Form. It is also void if youor any other "insured", at any time, inten-tionally conceal or misrepresent a mate-rial fact concerning:

a. This Coverage Form;

b. The covered "auto";

c. Your interest in the covered "auto";or

d. A claim under this Coverage Form.

3. Liberalization

If within 60 days prior to the beginning ofthis Coverage Part or during the policyperiod, we make any changes to anyforms or endorsements of this CoveragePart for which there is currently no sepa-rate premium charge, and that changeprovides more coverage than this Cover-age Part, the change will automaticallyapply to this Coverage Part as of the lat-ter of:

a. The date we implemented thechange in your state; or

b. The date this Coverage Part becameeffective; and

will be considered as included until theend of the current policy period. We willmake no additional premium charge forthis additional coverage during the in-terim.

4. No Benefit to Bailee - Physical DamageCoverages

We will not recognize any assignment orgrant any coverage for the benefit of anyperson or organization holding, storing ortransporting property for a fee regardlessof any other provision of this CoverageForm.



5. Other Insurance

a. For any covered "auto" you own, thisCoverage Form provides primary in-surance. For any covered "auto" youdon't own, the insurance provided bythis Coverage Form is excess overany other collectible insurance.However, while a covered "auto"which is a "trailer" is connected toanother vehicle, the Liability Cover-age this Coverage Form provides forthe "trailer" is:

(1) Excess while it is connected to amotor vehicle you do not own.

(2) Primary while it is connected toa covered "auto" you own.

b. For Hired Auto Physical DamageCoverage, any covered "auto" youlease, hire, rent or borrow is deemedto be a covered "auto" you own.However, any "auto" that is leased,hired, rented or borrowed with adriver is not a covered "auto".

c. Regardless of the provisions ofParagraph a. above, this CoverageForm's Liability Coverage is primaryfor any liability assumed under an"insured contract".

d. When this Coverage Form and anyother Coverage Form or policy cov-ers on the same basis, either excessor primary, we will pay only ourshare. Our share is the proportionthat the Limit of Insurance of ourCoverage Form bears to the total ofthe limits of all the Coverage Formsand policies covering on the samebasis.

6. Premium Audit

a. The estimated premium for this Cov-erage Form is based on the expo-sures you told us you would havewhen this policy began. We willcompute the final premium due whenwe determine your actual exposures.The estimated total premium will becredited against the final premiumdue and the first Named Insured willbe billed for the balance, if any. Thedue date for the final premium or ret-rospective premium is the dateshown as the due date on the bill. Ifthe estimated total premium exceedsthe final premium due, the firstNamed Insured will get a refund.

b. If this policy is issued for more thanone year, the premium for this Cov-erage Form will be computed annu-ally based on our rates or premiumsin effect at the beginning of eachyear of the policy.

7. Policy Period, Coverage Territory

Under this Coverage Form, we cover"accidents" and "losses" occurring:

a. During the Policy Period shown inthe Declarations; and

b. Within the coverage territory.

The coverage territory is:

a. The United States of America;

b. The territories and possessions ofthe United States of America;

c. Puerto Rico;

d. Canada; and

e. Anywhere in the world if:

(1) A covered "auto" of the privatepassenger type is leased, hired,rented or borrowed without adriver for a period of 30 days orless; and

(2) The "insured's" responsibility topay damages is determined in a"suit" on the merits, in the UnitedStates of America, the territoriesand possessions of the UnitedStates of America, Puerto Rico,or Canada or in a settlement weagree to.

We also cover "loss" to, or "accidents" in-volving, a covered "auto" while beingtransported between any of these places.

8. Two or More Coverage Forms or Poli-cies Issued by Us

If this Coverage Form and any otherCoverage Form or policy issued to you byus or any company affiliated with us applyto the same "accident", the aggregatemaximum Limit of Insurance under all theCoverage Forms or policies shall not ex-ceed the highest applicable Limit of In-surance under any one Coverage Formor policy. This condition does not apply toany Coverage Form or policy issued byus or an affiliated company specifically toapply as excess insurance over this Cov-erage Form.




A. "Accident" includes continuous or repeatedexposure to the same conditions resulting in"bodily injury" or "property damage".

B. "Auto" means:

1. A land motor vehicle, "trailer" or semi-trailer designed for travel on public roads;or

2. Any other land vehicle that is subject to acompulsory or financial responsibility lawor other motor vehicle insurance lawwhere it is licensed or principally ga-raged.

However, "auto" does not include "mobileequipment".

C. "Bodily injury" means bodily injury, sickness ordisease sustained by a person includingdeath resulting from any of these.

D. "Covered pollution cost or expense" meansany cost or expense arising out of:

1. Any request, demand, order or statutoryor regulatory requirement that the "in-sured" or others test for, monitor, cleanup, remove, contain, treat, detoxify orneutralize, or in any way respond to, orassess the effects of "pollutants"; or

2. Any claim or "suit" by or on behalf of agovernmental authority for damages be-cause of testing for, monitoring, cleaningup, removing, containing, treating, de-toxifying or neutralizing, or in any way re-sponding to, or assessing the effects of"pollutants".

"Covered pollution cost or expense" does notinclude any cost or expense arising out of theactual, alleged or threatened discharge, dis-persal, seepage, migration, release, escapeor emission of "pollutants":

a. That are, or that are contained in anyproperty that is:

(1) Being transported or towed by,handled, or handled for move-ment into, onto or from the cov-ered "auto";

(2) Otherwise in the course of tran-sit by or on behalf of the "in-sured";

(3) Being stored, disposed of,treated or processed in or uponthe covered "auto"; or

b. Before the "pollutants" or any prop-erty in which the "pollutants" arecontained are moved from the place

where they are accepted by the "in-sured" for movement into or onto thecovered "auto"; or

c. After the "pollutants" or any propertyin which the "pollutants" are con-tained are moved from the covered"auto" to the place where they are fi-nally delivered, disposed of or aban-doned by the "insured".

Paragraph a. above does not apply to fu-els, lubricants, fluids, exhaust gases orother similar "pollutants" that are neededfor or result from the normal electrical,hydraulic or mechanical functioning of thecovered "auto" or its parts, if:

(1) The "pollutants" escape, seep,migrate, or are discharged, dis-persed or released directly froman "auto" part designed by itsmanufacturer to hold, store, re-ceive or dispose of such "pollut-ants"; and

(2) The "bodily injury", "propertydamage" or "covered pollutioncost or expense" does not ariseout of the operation of anyequipment listed in Paragraphs6.b. or 6.c. of the definition of"mobile equipment".

Paragraphs b. and c. above do not applyto "accidents" that occur away frompremises owned by or rented to an "in-sured" with respect to "pollutants" not inor upon a covered "auto" if:

(1) The "pollutants" or any propertyin which the "pollutants" arecontained are upset, overturnedor damaged as a result of themaintenance or use of a cov-ered "auto"; and

(2) The discharge, dispersal, seep-age, migration, release, escapeor emission of the "pollutants" iscaused directly by such upset,overturn or damage.

E. "Diminution in value" means the actual or per-ceived loss in market value or resale valuewhich results from a direct and accidental"loss".

F. "Employee" includes a "leased worker". "Em-ployee" does not include a "temporaryworker".

G. "Insured" means any person or organizationqualifying as an insured in the Who is an In-sured provision of the applicable coverage.



Except with respect to the Limit of Insurance,the coverage afforded applies separately toeach insured who is seeking coverage oragainst whom a claim or "suit" is brought.

H. "Insured contract":

1. Means:

a. A lease of premises;

b. A sidetrack agreement;

c. An easement or license agreement,except in connection with construc-tion or demolition operations on orwithin 50 feet of a railroad;

d. An obligation, as required by ordi-nance, to indemnify a municipality,except in connection with work for amunicipality;

e. That part of any other contract oragreement pertaining to your busi-ness (including an indemnification ofa municipality in connection withwork performed for a municipality)under which you assume the tort li-ability of another to pay for "bodilyinjury" or "property damage" to athird party or organization. Tort liabil-ity means a liability that would be im-posed by law in the absence of anycontract or agreement;

f. That part of any other contract oragreement entered into, as part ofyour business, pertaining to therental or lease, by you or any of your"employees", of any "auto". How-ever, such contract or agreementshall not be considered an "insuredcontract" to the extent that it obli-gates you or any of your "employ-ees" to pay for "property damage" toany "auto" rented or leased by youor any of your "employees".

2. Does not include that part of any contractor agreement:

a. That indemnifies a railroad for "bodilyinjury" or "property damage" arisingout of construction or demolition op-erations, within 50 feet of any rail-road property and affecting any rail-road bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing;or

b. That pertains to the loan, lease orrental of an "auto" to you or any ofyour "employees", if the "auto" isloaned, leased or rented with adriver; or

c. That holds a person or organizationengaged in the business of trans-porting property by "auto" for hireharmless for your use of a covered"auto" over a route or territory thatperson or organization is authorizedto serve by public authority.

I. "Leased worker" means a person leased toyou by a labor leasing firm under an agree-ment between you and the labor leasing firm,to perform duties related to the conduct ofyour business. "Leased worker" includes su-pervisors furnished to you by the labor leasingfirm. "Leased worker" does not include a"temporary worker".

J. "Loss" means direct and accidental loss ordamage.

K. "Mobile equipment" means any of the follow-ing types of land vehicles, including any at-tached machinery or equipment:

1. Bulldozers, farm machinery, forklifts andother vehicles designed for use princi-pally off public roads;

2. Vehicles maintained for use solely on ornext to premises you own or rent;

3. Vehicles that travel on crawler treads;

4. Vehicles, whether self-propelled or not,maintained primarily to provide mobility topermanently mounted:

a. Power cranes, shovels, loaders, dig-gers or drills; or

b. Road construction or resurfacingequipment such as graders, scrap-ers or rollers.

5. Vehicles not described in Paragraphs 1.,2., 3., or 4. above that are not self-propelled and are maintained primarily toprovide mobility to permanently attachedequipment of the following types:

a. Air compressors, pumps and gen-erators, including spraying, welding,building cleaning, geophysical explo-ration, lighting and well servicingequipment; or

b. Cherry pickers and similar devicesused to raise or lower workers.

6. Vehicles not described in Paragraphs 1.,2., 3., or 4. above maintained primarily forpurposes other than the transportation ofpersons or cargo. However, self-propelled vehicles with the followingtypes of permanently attached equipmentare not "mobile equipment" but will beconsidered "autos":

a. Equipment designed primarily for:



(1) Snow removal;

(2) Road maintenance, but not con-struction or resurfacing; or

(3) Street cleaning;

b. Cherry pickers and similar devicesmounted on automobile or truckchassis and used to raise or lowerworkers; and

c. Air compressors, pumps and gen-erators, including spraying, welding,building cleaning, geophysical explo-ration, lighting or well servicingequipment.

However, "mobile equipment" does not in-clude land vehicles that are subject to a com-pulsory or financial responsibility law or othermotor vehicle insurance law where it is li-censed or principally garaged. Land vehiclessubject to a compulsory or financial responsi-bility law or other motor vehicle insurance laware considered "autos".

L. "Pollutants" means any solid, liquid, gaseousor thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals, petroleum, petroleum productsand their by-products, and waste. Waste in-cludes materials to be recycled, reconditionedor reclaimed. "Pollutants" include but are notlimited to substances which are generally rec-ognized in industry or government to beharmful or toxic to persons, property or theenvironment regardless of whether injury ordamage is caused directly or indirectly by the"pollutants" and whether:

1. The "insured" is regularly or otherwiseengaged in activities which taint or de-grade the environment; or

2. The "insured" uses, generates or pro-duces the "pollutant".

M. "Property damage" means damage to or lossof use of tangible property.

N. "Suit" means a civil proceeding in which:

1. Damages because of "bodily injury" or"property damage"; or

2. A "covered pollution cost or expense",

to which this insurance applies, are alleged.

"Suit" includes:

a. An arbitration proceeding in whichsuch damages or "covered pollutioncosts or expenses" are claimed andto which the "insured" must submit ordoes submit with our consent; or

b. Any other alternative dispute resolu-tion proceeding in which such dam-ages or "covered pollution costs orexpenses" are claimed and to whichthe insured submits with our con-sent.

O. "Temporary worker" means a person who isfurnished to you to substitute for a permanent"employee" on leave or to meet seasonal orshort-term workload conditions.

P. "Trailer" includes semitrailer.

Q. "Workplace" means that place and duringsuch hours to which the "employee" sustain-ing "bodily injury" was assigned by you, orany other person or entity acting on your be-half, to work on the date of the "accident".

NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT

(Broad Form)


A. Under any Liability Coverage, to "bodilyinjury" or "property damage":

(1) With respect to which an "insured"under the policy is also an "insured"under a nuclear energy liability policyissued by Nuclear Energy LiabilityInsurance Association, MutualAtomic Energy Liability Underwritersor Nuclear Insurance Association ofCanada, or would be an "insured"under any such policy but for its ter-mination upon exhaustion of its limitof liability; or

(2) Resulting from the "hazardous prop-erties" of "nuclear material" and with

respect to which (a) any person ororganization is required to maintainfinancial protection pursuant to theAtomic Energy Act of 1954, or anylaw amendatory thereof, or (b) the"insured" is, or had this policy notbeen issued would be, entitled to in-demnity from the United States ofAmerica, or any agency thereof, un-der any agreement entered into bythe United States of America, or anyagency thereof, with any person ororganization.

B. Under any Medical Payments coverage,to expenses incurred with respect to"bodily injury" resulting from the "hazard-



ous properties" of "nuclear facility" by anyperson or organization.

C. Under any Liability Coverage, to "bodilyinjury" or "property damage" resultingfrom the "hazardous properties" of "nu-clear material", if:

(1) The "nuclear material" (a) is at any"nuclear facility" owned by, or oper-ated by or on behalf of, an "insured"or (b) has been discharged or dis-persed therefrom;

(2) The "nuclear material" is contained in"spent fuel" or "waste" at any timepossessed, handled, used, proc-essed, stored, transported or dis-posed of by or on behalf of an "in-sured"; or

(3) The "bodily injury" or "property dam-age" arises out of the furnishing byan "insured" of services, materials,parts or equipment in connectionwith the planning, construction,maintenance, operation or use ofany "nuclear facility", but if such fa-cility is located within the UnitedStates of America, its territories orpossessions or Canada, this Exclu-sion (3) applies only to "propertydamage" to such "nuclear facility"and any property thereat.

2. As used in this endorsement:

"Hazardous properties" include radioactive,toxic or explosive properties;

"Nuclear material" means "source material","special nuclear material" or "byproduct mate-rial";

"Source material", "special nuclear material",and "byproduct material" have the meaningsgiven them in the Atomic Energy Act of 1954or in any law amendatory thereof;

"Spent fuel" means any fuel element or fuelcomponent, solid or liquid, which has been

used or exposed to radiation in a "nuclear re-actor";

"Waste" means any waste material (a) con-taining "byproduct material" other than thetailings or wastes produced by the extractionor concentration of uranium or thorium fromany ore processed primarily for its "sourcematerial" content, and (b) resulting from theoperation by any person or organization ofany "nuclear facility" included under the firsttwo paragraphs of the definition of "nuclearfacility".


(a) Any "nuclear reactor";

(b) Any equipment or device designed orused for (1) separating the isotopes ofuranium or plutonium, (2) processing orutilizing "spent fuel", or (3) handling,processing or packaging "waste";

(c) Any equipment or device used for theprocessing, fabricating or alloying of"special nuclear material" if at any timethe total amount of such material in thecustody of the "insured" at the premiseswhere such equipment or device is lo-cated consists of or contains more than25 grams of plutonium or uranium 233 orany combination thereof, or more than250 grams of uranium 235;

(d) Any structure, basin, excavation, prem-ises or place prepared or used for thestorage or disposal of "waste";

and includes the site on which any of the foregoingis located, all operations conducted on such siteand all premises used for such operations:

"Nuclear reactor" means any apparatus designedor used to sustain nuclear fission in a self-supporting chain reaction or to contain a criticalmass of fissionable material;

"Property damage" includes all forms of radioac-tive contamination of property.


AA 2009 01 17


CHANGES - TOWING AND LABOR

This endorsement modifies insurance provided by the following:


With respect to the coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement.

1. SECTION III - PHYSICAL DAMAGE COV-ERAGE, A. Coverage, 2. Towing is deletedin its entirety and replaced with:

2. Towing

We will pay up to the limit shown in theDeclarations for towing and labor costsincurred each time a covered "auto" isdisabled. However, the labor must be per-formed at the place of disablement.


AA 296 07 12


CHANGES - AUDIO, VISUAL AND DATA ELECTRONICEQUIPMENT COVERAGE

This endorsement modifies insurance provided by the following:


With respect to the coverage provided by this endorsement, the provisions of the Coverage Form apply unlessmodified by this endorsement.

1. SECTION III - PHYSICAL DAMAGE COVER-AGE, B. Exclusions, 4. is deleted in its en-tirety and replaced with:

4. We will not pay for "loss" to any of the fol-lowing:

a. Tapes, records, discs or similar au-dio, visual or data electronic devicesdesigned for use with audio, visual or data electronic equipment.

b. Any device designed or used to de-tect speed-measuring equipment, such as radar or laser detectors, and any jamming apparatus intended to elude or disrupt speed-measuring equipment.

c. Any electronic equipment, without re-gard to whether this equipment ispermanently installed, that repro-duces, receives or transmits audio, visual or data signals.

d. Any accessories used with the elec-tronic equipment described in Para-graph c. above.

Exclusions 4.c. and 4.d. do not apply toequipment designed to be operated solelyby use of the power from the "auto's" elec-trical system that, at the time of "loss", is:

a. Permanently installed in or upon thecovered "auto";

b. Removable from a housing unit which is permanently installed in or upon the covered "auto";

c. An integral part of the same unit housing any electronic equipment described in Paragraphs a. and b.above; or

d. Necessary for the normal operation of the covered "auto" or the monitor-ing of the covered "auto's" operating system.

2. SECTION III - PHYSICAL DAMAGE COVER-AGE, C. Limits of Insurance, 1. is deleted inits entirety and replaced with:

1. The most we will pay for:

a. "Loss" to any covered "auto" is the lesser of;

(1) The actual cash value of thedamaged or stolen property as ofthe time of the "loss"; or

(2) The cost of repairing or replacingthe damaged or stolen property with other property of like kind orquality.

b. All electronic equipment that repro-duces, receives or transmits audio, visual or data signals in any one "loss", is up to $1,000, if, at the time of "loss", such electronic equipment is:

(1) Permanently installed in or uponthe covered "auto" in a housing, opening or other location that isnot normally used by the "auto" manufacturer for the installationof such equipment;

(2) Removable from a permanently installed housing unit as de-scribed in Paragraph b.1. above; or

(3) An integral part of such equip-ment as described in Para-graphs b.(1) and b.(2) above.

3. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE ADDED LIMITS

The sub-limit in Paragraph 1.b. above is in ad-dition to the Limit of Insurance shown in the Schedule of the Audio, Visual and Data Equipment Coverage endorsement, if pur-chased.


Includes copyrighted material of ISOAA 4044 IL 01 15 Properties, Inc., with its permission. Page 1 of 4


ILLINOIS UNINSURED MOTORISTS COVERAGE

Throughout this endorsement "you" and "your" refer to the organization(s) and a natural person(s) shown as aNamed Insured on this endorsement. "You" and "your" do not refer to any other person(s) or organization(s), including but not limited to agents, employees, servants, members, shareholders or independent contractors of any person or organization shown as a Named Insured on this endorsement.

For a covered "auto" licensed or principally garaged in, or "garage operations" conducted in Illinois, this en-dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORMGARAGE COVERAGE FORMMOTOR CARRIER COVERAGE FORMTRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unlessmodified by this endorsement.

This endorsement changes the Coverage Form effective on the effective date of the Coverage Form unlessanother date is indicated below.

Endorsement Effective: Policy Number:

Named Insured:

SCHEDULE

Limit of Insurance

$ Each "Accident"

(If no entry appears above, information required to complete this endorsement will be shown in the Declara-tions as applicable to this endorsement).

A. Coverage

1. We will pay all sums the "insured" is legallyentitled to recover as compensatory dam-ages from the owner or operator of:

a. An "uninsured motor vehicle" as de-fined in Paragraph F.4.a. and b. be-cause of "bodily injury":

(1) Sustained by the "insured"; and

(2) Cause by an "accident".

b. An "uninsured motor vehicle" as de-fined in Paragraph F.4.c. because of"bodily injury" sustained by the "in-sured".

The owner's or operator's liability for these damages must result from the ownership, maintenance or use of the "uninsured motor vehicle". The "insured" shall be required to prove all elements of the "insured's" claim

that are necessary to recover from the own-er or operator of the "uninsured motor vehi-cle".

2. We will pay under this endorsement only if the limits of insurance under all applicable liability bonds or policies have been partially or fully exhausted by payment of judgments or settlements.

3. Any judgment for damages arising out of a "suit" brought without our written consent to both the "suit" and the judgment is not bind-ing on us.

B. Who is an Insured


1. If any natural persons are specifically listed as a Named Insured on this endorsement, the following persons are "insureds":

07-20-2019 EBA 049 72 16


REFER TO AA4183



a. Natural persons specifically listed as a Named Insured on this endorsement;

b. "Family members" of natural personsspecifically listed as a Named Insured on this endorsement;

c. Any natural person, but only for injuriesthat occur while "occupying" an "auto"for which coverage is provided in the Coverage Form or a temporary substi-tute for such covered "auto". In such case, the covered "auto" must be out ofservice because of its break down, re-pair, servicing, "loss" or destruction; and

d. Any natural person, but only for dam-ages he or she is entitled to recover because of "bodily injury" sustained byan "insured" described in ParagraphsB.1.a., b. or c.

2. If an entity other than a natural person is listed as a Named Insured on this endorse-ment, and no natural persons are listed as a Named Insured in the endorsement, the fol-lowing persons are "insureds":

a. Any natural person, but only for injuries that occur while "occupying" an "auto"for which coverage is provided in the Coverage Form or a temporary substi-tute for such covered "auto". In such case, the covered "auto" must be out of service because of its break down, re-pair, servicing, "loss" or destruction.

b. Any natural person is an "insured", but only for damages he or she is entitled to recover because of "bodily injury"sustained by an "insured" described in Paragraph B.2.a.

C. Exclusions

This insurance does not apply to any of the fol-lowing:

1. Any claim settled with the person(s) or or-ganization(s) legally responsible for the "ac-cident" or the insurer or legal representative of such person(s) or organization(s) without our consent.

2. The direct or indirect benefit of any insurer or self-insurer under any personal injury pro-tection benefits, workers' compensation, disability benefits, pension statutes or simi-lar laws.

3. "Bodily injury" sustained by an "insured"while the "insured" is operating, or "occupy-ing" a "motor vehicle" owned by, furnishedto, or available for the regular use of a Named Insured or, if the Named Insured is a natural person, a spouse, or a resident relative of such Named Insured, if the "mo-

tor vehicle" is not specifically identified in the Coverage Form or is not a newly acquired or replacement "motor vehicle" covered un-der the terms of the Coverage Form.

4. "Bodily injury" suffered by any person while operating or "occupying" a "motor vehicle"without reasonable belief that he or she is entitled to do so.

5. Punitive or exemplary damages.

D. Limit of Insurance

1. Regardless of the number of policies, cov-ered "autos", "insureds", premiums paid, claims-made or vehicles involved in the "ac-cident", the most we will pay for all damag-es, including, but not as a separate claim, damages claimed by any person or organi-zation for care, loss of services, or death due to and arising out of any one "accident"is the limit of Uninsured Motorists Cover-age shown in the Schedule or the Declara-tions.

We will apply the limit shown in the sched-ule or the Declarations to first provide the separate limits required by the Illinois SafetyResponsibility Law as follows:

a. $25,000 for "bodily injury" to any one person due to and arising out of anyone "accident", and

b. $50,000 for "bodily injury" to two or more persons due to and arising out of any one "accident".

This provision will not change our total limit of insurance.

2. No one will be entitled to receive duplicate payments for the same elements of "loss"under this endorsement and any Liability Coverage Form.

We will not make a duplicate payment underthis endorsement for any element of "loss"for which payment has been made by or for anyone who is legally liable.

We will not pay for any element of "loss" if a person is entitled to receive payment for thesame element of "loss" under any personal injury protection benefits, workers' compen-sation, disability benefits, pension statutes or similar laws, including medical payments made under any statute.

3. The limit of insurance provided in this en-dorsement shall be reduced by all sums available for payment to the "insured" for "bodily injury" under all liability bonds or pol-icies covering persons or organizations le-gally liable for the "accident".



E. Changes in Conditions

The Conditions for Illinois Uninsured Motor-ists Coverage are changed as follows:

1. With respect to an "uninsured motor vehi-cle", the Other Insurance Condition in theBusiness Auto and Garage Coverage Forms and Other Insurance Primary andExcess Insurance Provisions in the Truck-ers and Motor Carrier Coverage Forms are replaced by the following:

If there is other applicable insurance availa-ble under one or more policies or provisionsof coverage:

a. The maximum recovery under all cov-erage forms or policies combined mayequal but not exceed the highest appli-cable limit for any one vehicle under any coverage form or policy providing coverage on either a primary or excessbasis.

b. Any insurance we provide with respect to a vehicle you do not own shall be ex-cess over any other collectible unin-sured motorists insurance. We will payonly the amount by which the limit of in-surance for this coverage exceeds the limits of such other insurance.

c. If the coverage under this endorsement is provided:

(1) On a primary basis, we will pay on-ly our share of the "loss" that must be paid under insurance providingcoverage on a primary basis. Our share is the proportion that our lim-it of insurance bears to the total ofall applicable limits of insurance for coverage on a primary basis.

(2) On an excess basis, we will pay only our share of the "loss" that must be paid under insurance providing coverage on an excessbasis. Our share is the proportion that our limit of insurance bears to the total of all applicable limits ofinsurance for coverage on an ex-cess basis.

2. Duties in the Event of Accident, Claim, Suit or Loss is changed by adding the fol-lowing:

a. You or any other involved "insured"must promptly notify the police if a hit-and-run driver is involved;

b. You or any other involved "insured" must promptly send us copies of the le-gal papers if a "suit" is brought; and

c. You and any other involved "insured" must cooperate with us in the investiga-tion, settlement or defense of the claimor "suit". Cooperation includes, but isnot limited to, identifying all parties who may be responsible for the "accident" and all insurers who may be obligatedto provide coverage.

3. Transfer of Rights of Recovery Against Others to Us does not apply.

4. The following Condition is added:

Reimbursement And Trust

If we make any payment and the "insured"recovers from another party, the "insured"shall hold the proceeds in trust for us and pay us back the amount we have paid.

5. Legal Action Against Us is replaced by the following:

No lawsuit or action whatsoever or any pro-ceeding in arbitration shall be brought against us for the recovery of any claim un-der the provisions of the Uninsured Motor-ists Coverage of this Coverage Form unlessthe "insured" has satisfied all of the things that "insured" is required to do under the terms and conditions of this endorsement. Any claim or "suit" for Uninsured Motorists Coverage must be brought within two (2) years of the date of the "accident" causing the "bodily injury" or one (1) year after the date the liability insurer of the "uninsuredmotor vehicle" becomes insolvent, whichev-er is later. Our subrogation rights also must not be prejudiced.


Arbitration

a. If we and an "insured" do not agree:

(1) Whether that person is legally enti-tled to recover damages from a party responsible for the "acci-dent"; or

(2) As to the amount of damages that may be recovered;

the matter may be settled by arbitration. However, disputes concerning cover-age under this endorsement may not be arbitrated.

The "insured" and we must mutuallyagree to arbitrate the disagreements. If the "insured" and we do not agree to arbitrate, then the disagreement will be resolved in a court having competent jurisdiction.

If arbitration is used, each party will se-lect an arbitrator. The two arbitrators



will select a third. If they cannot agree within 45 days as to the third arbitrator, either may request that selection be made by a judge of a court having ju-risdiction. Each party will:

(1) Pay the expenses it incurs; and

(2) Bear the expenses of the third arbi-trator equally.

b. Unless both parties agree otherwise, arbitration will take place in the countyin which the "insured" lives. If arbitrationis submitted to the American ArbitrationAssociation, then the American Arbitra-tion Association rules shall apply to all matters except medical opinions. As to medical opinions, if the amount of damages being sought:

(1) Is equal to or less than the mini-mum limit for "bodily injury" liability specified by the Illinois Safety Re-sponsibility Law, then the AmericanArbitration Association rules shall apply.

(2) Exceeds the minimum limit for "bodily injury" liability specified by the Illinois Safety Responsibility Law, then the rules of evidence that apply in the circuit court forplacing medical opinions into evi-dence shall apply.

In all other arbitration proceedings, lo-cal rules of law as to arbitration proce-dure and evidence will apply. A decision agreed to by two of the arbitrators will be binding as to the amount of damag-es not exceeding the lesser of either:

(1) $75,000 for "bodily injury" to any one person/$150,000 for "bodily in-jury" to two or more personscaused by any one "accident"; or

(2) The Limit of Uninsured MotoristsInsurance shown in the Schedule or Declarations.

F. Additional Definitions

As used in this endorsement:

1. "Family member" means a natural person who is related to and is a resident of the same household as a natural person shown as a Named Insured on this endorsement. Such relation may be by blood, marriage or adoption and may include a ward or foster child.

2. "Motor vehicle" means a self-propelled vehi-cle designed for use and principally used on public roads, including an automobile, truck, semi-tractor, motorcycle and bus. "Motor

vehicle" also includes a motor home, pro-vided the motor home is not stationary and is not being used as a temporary or perma-nent residence or office. "Motor vehicle"does not include a trolley, streetcar, "trailer", railroad engine, railroad car, motorized bicy-cle, golf cart, off-road recreational vehicle, snowmobile, fork lift, aircraft, watercraft, construction equipment, farm tractor or oth-er vehicle designed and principally used for agricultural purposes, mobile home, vehicletraveling on treads or rails or any similar ve-hicle.

3. "Occupying" means in, upon, getting in, on, out or off.

4. "Uninsured motor vehicle" means a land "motor vehicle" or "trailer":

a. For which no liability bond or policy ap-plies at the time of an "accident".

b. For which an insuring or bonding com-pany denies coverage or is or becomes insolvent.

c. That is a hit-and-run vehicle and neither the operator nor owner can be identi-fied. The vehicle must either:

(1) Hit an "insured", a covered "auto" or a vehicle an "insured" is "occu-pying"; or

(2) Cause "bodily injury" to an "in-sured" without hitting an "insured", a covered "auto" or a vehicle an "insured" is "occupying".

We will only accept competent evi-dence which may include the testimony,under oath, of a person making claim under this or similar coverage.

However, "uninsured motor vehicle" does not include any "motor vehicle":

a. Owned or operated by a self-insurer under any applicable motor vehicle law, except a self-insurer who is or be-comes insolvent and cannot provide the amounts required by that motor vehiclelaw.

b. Owned by any governmental unit or agency.

c. Designed for use mainly off publicroads while not on public roads.

d. Owned by or furnished or available for your regular use or that of any "familymember" or any other "insured".

e. For which liability coverage is affordedunder this Coverage Form.




ILLINOIS UNDERINSURED MOTORISTS COVERAGE

Throughout this endorsement "you" and "your" refer to the organization(s) and a natural person(s) shown as aNamed Insured on this endorsement. "You" and "your" do not refer to any other person(s) or organization(s), including but not limited to agents, employees, servants, members, shareholders or independent contractors of any person or organization shown as a Named insured on this endorsement.

For a covered "auto" licensed or principally garaged in, or "garage operations" conducted in Illinois, this en-dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORMGARAGE COVERAGE FORMMOTOR CARRIER COVERAGE FORMTRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unlessmodified by this endorsement.

This endorsement changes the Coverage Form effective on the effective date of the Coverage Form unlessanother date is indicated below.

Endorsement Effective: Policy Number:

Named Insured:

SCHEDULE

Limit of Liability

$ Each Accident


With respect to coverage provided by this endorse-ment, the provisions of the Coverage Form applyunless modified by the endorsement.

A. Coverage

1. We will pay all sums the "insured" is legallyentitled to recover as compensatory dam-ages from the owner or operator of an "un-derinsured motor vehicle". The damages must result from "bodily injury" sustained by the "insured" caused by an "accident". The owner's or operator's liability for these dam-ages must result from the ownership, main-tenance or use of the "underinsured motor vehicle". The "insured" shall be required to prove all elements of the "insured's" claim that are necessary to recover from the owner or operator of the "underinsured" mo-tor vehicle".

2. We will pay under this endorsement only if a. or b. below applies:

a. The limits of insurance under all appli-cable liability bonds or policies have

been partially or fully exhausted bypayment of judgments or settlements; or

b. A "tentative settlement" has been made between an "insured" and a person(s) or organization(s) who may be legallyresponsible for the "accident", or the in-surer and legal representative of suchperson(s) or organization(s) and we:

(1) Have been given a prompt written notice of such settlement and ad-vance payment to the "insured" equal to the "tentative settlement" within 30 days after receipt of noti-fication; or

(2) We and an "insured" have reached a "settlement agreement".

3. Any judgment for damages arising out of a "suit" brought without our written consent to both the "suit" and the judgment is not bind-ing on us.

07-20-2019 EBA 049 72 16


REFER TO AA4183



B. Who is an Insured


1. If any natural persons are specifically listed as a Named Insured on this endorsement, the following persons are "insureds":

a. Natural persons specifically listed as a Named Insured on this endorsement;

b. "Family members" of natural personsspecifically listed as a Named Insuredon this endorsement;

c. Any natural person, but only for injuriesthat occur while "occupying" an "auto"for which coverage is provided in the Coverage Form or a temporary substi-tute for such covered "auto". In such case, the covered "auto" must be out ofservice because of its break down, re-pair, servicing, "loss" or destruction; and

d. Any natural person, but only for dam-ages he or she is entitled to recover because of "bodily injury" sustained byan "insured" described in ParagraphsB.1.a., b. or c.

2. If an entity other than a natural person is listed as the Named Insured on this en-dorsement, and no natural persons are listed as Named Insureds in the Declara-tions, the following persons are "insureds":

a. Any natural person, but only for injuriesthat occur while "occupying" an "auto"for which coverage is provided in the Coverage Form or a temporary substi-tute for such covered "auto". In such case, the covered "auto" must be out of service because of its break down, re-pair, servicing, "loss" or destruction.

b. Any natural person is an "insured", but only for damages he or she is entitled to recover because of "bodily injury"sustained by an "insured" described in Paragraph B.2.a.

C. Exclusions

This insurance does not apply to any of the fol-lowing:

1. Any claim settled with the person(s) or or-ganization(s) legally responsible for the "ac-cident" or the insurer or legal representative of such person(s) or organization(s) without our consent.

2. The direct or indirect benefit of any insurer under any personal injury protection, work-ers' compensation, disability benefits, pen-sion statutes or similar law.

3. "Bodily injury" sustained by an "insured"while the "insured" is operating or "occupy-ing" a "motor vehicle" owned by, furnished to, or available for the regular use of a Named Insured or, if the Named Insured is a natural person, a spouse or a resident relative of such Named Insured, if the "mo-tor vehicle" is not specifically identified in the Coverage Form or is not a newly acquiredor replacement "motor vehicle" covered un-der the terms of the Coverage Form.

4. "Bodily injury" suffered by any person while operating or "occupying" a "motor vehicle"without reasonable belief that he or she is entitled to do so.

5. Punitive or exemplary damages.

D. Limit of Insurance

1. Regardless of the number of policies, cov-ered "autos", "insureds", premiums paid, claims-made or vehicles involved in the "ac-cident", the most we will pay for all dam-ages, including, but not as a separate claim, damages claimed by any person or organi-zation for care, loss of services, or death due to and arising out of any one "accident"is the limit of Underinsured Motorists Coverage shown in the Schedule or theDeclarations.

2. Except in the event of a "settlement agree-ment", the limit of insurance provided in this endorsement shall be reduced by all sums available for payment:

a. To the "insured" for "bodily injury" underall liability bonds or policies covering persons or organizations legally liable for the "accident".

b. Under any automobile medical pay-ments coverage. However, the limit of insurance provided in this endorsement shall not be reduced by any sums paid or payable under Social Security dis-ability benefits.

No one will be entitled to receive duplicate payments for the same elements of "loss" under this endorsement and any LiabilityCoverage Form.

We will not make duplicate payment under this endorsement for element of "loss" for which payment has been made by or for anyone who is legally liable.

We will not pay for any element of "loss" if aperson is entitled to receive payment for the same element of "loss" under any personal injury protection, workers' compensation, disability benefits, pension statutes or simi-lar law, including medical payments made under any statute



3. In the event of a "settlement agreement", the maximum limit of insurance provided in this endorsement shall be the amount bywhich the limit of insurance provided in this endorsement exceeds the limits of bodily in-jury liability bonds or policies applicable to the owner or operator of the "underinsured motor vehicle".

E. Changes in Conditions

The Conditions for Illinois Underinsured Mo-torists Coverage are changed as follows:

1. With respect to an "underinsured motor ve-hicle", the Other Insurance Condition in the Business Auto and Garage Coverage Forms and Other Insurance Primary andExcess Insurance Provisions in the Truck-ers and Motor Carrier Coverage Forms are replaced by the following:

If there is other applicable insurance avail-able under one or more policies or provi-sions of coverage:

a. The maximum recovery under all cov-erage forms or policies combined mayequal but not exceed the highest appli-cable limit for any one vehicle under any coverage form or policy providing coverage on either a primary or excessbasis.

b. Any insurance we provide with respect to a vehicle you do not own shall be ex-cess over any other collectible underin-sured motorists insurance. We will payonly the amount by which the limit of in-surance for this coverage exceeds the limits of such other insurance.

c. If the coverage under this endorsement is provided:

(1) On a primary basis, we will pay only our share of the "loss" that must be paid under insurance pro-viding coverage on a primary ba-sis. Our share is the proportion thatour limit of insurance bears to the total of all applicable limits of in-surance for coverage on a primary basis.

(2) On an excess basis, we will pay only our share of the "loss" that must be paid under insurance pro-viding coverage on an excess ba-sis. Our share is the proportion that our limit of insurance bears to the total of all applicable limits of in-surance for coverage on an excessbasis.

2. Duties in the Event of Accident, Claim, Suit or Loss is changed by adding the fol-lowing:

a. A person seeking Underinsured Motor-ists Coverage must promptly notify usin writing of a "tentative settlement" be-tween the "insured" and a person(s) or organization(s) who may be legally re-sponsible for the "accident", or the in-surer or legal representative of such person(s) or organization(s) and allowus 30 days to advance payment to that "insured" in an amount equal to the "tentative settlement" to preserve our rights against the person(s) or organi-zation(s) who may be legally responsi-ble for the "accident", or the insurer or legal representative of such person(s) or organization(s).

b. File "suit" against the person(s) or or-ganization(s) who may be legally re-sponsible for the "accident" or the in-surer or legal representative of such person(s) or organization(s), prior to theconclusion of a "settlement agreement". Such "suit" cannot be abandoned orsettled without giving us notice in writ-ing of a "tentative settlement" between the "insured" and a person(s) or organi-zation(s) who may be legally responsi-ble for the "accident", or the insurer or legal representative of such person(s) or organization(s) and allowing us 30 days to advance payment to that "in-sured" in an amount equal to that set-tlement to preserve our rights against the person(s) or organization(s) who may be legally responsible for the "ac-cident", or the insurer or legal represen-tative of such person(s) or organiza-tion(s);

c. You or any other involved "insured"must promptly send us copies of the le-gal papers if a "suit" is brought; and

d. You and any other involved "insured" must cooperate with us in the investiga-tion, settlement or defense of the claim or "suit". Cooperation includes, but isnot limited to, identifying all parties who may be responsible for the "accident"and all insurers who may be obligatedto provide coverage.

3. The following is added to Transfer of Rights of Recovery Against Others to Us:

Transfer of Rights of Recovery Against Others to Us does not apply to damagescaused by an "accident" with an "underin-sured motor vehicle" if we:



a. Have been given prompt written notice of a "tentative settlement" between an "insured" and a person(s) or organiza-tion(s) who may be legally responsible for the "accident", or the insurer or legalrepresentative of such person(s) or or-ganization(s); and

b. Fail to advance payment to the "in-sured" in an amount equal to the "tenta-tive settlement" within 30 days after re-ceipt of notification.

If we advance payment to the "insured" in an amount equal to the "tentative settle-ment" within 30 days after receipt of notifica-tion:

a. That payment will be separate from anyamount the "insured" is entitled to re-cover under the provisions of Underin-sured Motorists Coverage; and

b. We also have a right to recover the ad-vanced payment.

However, in the event of a "settlement agreement", we shall be entitled to recover only for amounts which exceed the limit of bodily injury liability bonds or policies appli-cable to the owner or operator of the "under-insured motor vehicle".


Reimbursement And Trust

If we make any payment and the "insured"recovers from another party, the "insured"shall hold the proceeds in trust for us and pay us back the amount we have paid.

However, in the event of a "settlement agreement", we shall be entitled to recover only for amounts which exceed the limit of bodily injury liability bonds or policies appli-cable to the owner or operator of the "under-insured motor vehicle".

5. Legal Action Against Us is replaced by the following:

No lawsuit or action whatsoever or any pro-ceeding in arbitration shall be brought against us for the recovery of any claim un-der the provisions of the Underinsured Mo-torists Coverage of this Coverage Form unless the "insured" has satisfied all of the things that "insured" is required to do under the terms and conditions of this endorse-ment. Any claim or "suit" for Underinsured Motorists Coverage must be brought within two (2) years of the date of the "accident"causing the "bodily injury" or one (1) year af-ter the date the liability insurer of the "unin-sured motor vehicle" becomes insolvent, whichever is later. Our subrogation rights also must not be prejudiced.


Arbitration

a. If we and an "insured" do not agree:

(1) Whether that person is legally enti-tled to recover damages from aparty responsible for the "acci-dent"; or

(2) As to the amount of damages that may be recovered;

the matter may be settled by arbitration. However, disputes concerning cover-age under this endorsement may not be arbitrated.

The "insured" and we must mutually agree to arbitrate the disagreements. If the "insured" and we do not agree to arbitrate, then the disagreement will be resolved in a court having competent jurisdiction.

If arbitration is used, each party will se-lect an arbitrator. The two arbitrators will select a third. If they cannot ag-gress within 45 days as to the third arbi-trator, either may request that selection be made by a judge of a court having jurisdiction. Each party will:

(1) Pay the expenses it incurs; and

(2) Bear the expenses of the third arbi-trator equally.

b. Unless both parties agree otherwise, arbitration will take place in the countyin which the "insured" lives. Local rulesof law as to arbitration procedures and evidence will apply. A decision agreed to by two of the arbitrators will be bind-ing as to:

(1) Whether the "insured" is legally en-titled to recover damages from a party responsible for the "acci-dent"; and

(2) The amount of damages.

F. Additional Definitions

As used in this endorsement:

1. "Family member" means a natural person who is related to and is a resident of the same household as a natural person shown as a Named Insured on this endorsement. Such relation may be by blood, marriage or adoption, and may include a ward or foster child.

2. "Motor vehicle" means a self-propelled vehi-cle designed for use and principally used on public roads, including an automobile, truck,



semi-tractor, motorcycle and bus. "Motor vehicle" also includes a motor home, pro-vided the motor home is not stationary and is not being used as a temporary or perma-nent residence or office. "Motor vehicle" does not include a trolley, streetcar, "trailer", railroad engine, railroad car, motorized bicy-cle, golf cart, off-road recreational vehicle, snowmobile, fork lift, aircraft, watercraft, construction equipment, farm tractor or other vehicle designed and principally used for agricultural purposes, mobile home, ve-hicle traveling on treads or rails or any simi-lar vehicle.

3. "Occupying" means in, upon, getting in, on, out or off.

4. "Settlement agreement" means we and an "insured" agree that the "insured" is legallyentitled to recover, from the person(s) or or-ganization(s) who may be legally responsi-ble for the "accident", or the legal represen-tative of such person(s) or organization(s), damages for "bodily injury" and, without ar-bitration, agree also as to the amount ofdamages. Such agreement is final and bind-ing regardless of any subsequent judgment or settlement reached by the "insured" with the person(s) or organization(s) who may be legally responsible for the "accident", or the legal representative of such person(s) or or-ganization(s),.

5. "Tentative settlement" means an offer from the person(s) or organization(s) who may be legally responsible for the "accident", or the legal representative of such person(s) or or-ganization(s), to compensate an "insured"

for damages incurred because of "bodily in-jury" sustained in an "accident" involving an"underinsured motor vehicle".

6. "Underinsured motor vehicle" means a land "motor vehicle" or "trailer" of any type for which the sum of the limits of coverage available for payment to the "insured" under all liability bonds or policies covering per-son(s) or organization(s) liable to the "in-sured" at the time of an "accident" are less than the Limit of Insurance for this coverageor reduced by payments to others injured in the accident to an amount which is less than the Limit of Insurance for this coverage. However, "underinsured motor vehicle"does not include any "motor vehicle":

a. Owned or operated by any self-insurer under any applicable motor vehicle law, except a self-insurer who is or be-comes insolvent and cannot provide the amount required by that motor vehicle law.

b. Owned by any governmental unit or agency.

c. Designed for use mainly off publicroads while not on public roads.

d. Which is an "uninsured motor vehicle".

e. Owned by, furnished or available for the regular use of any "insured", other than the named insured, or a "family mem-ber" of a named insured.

f. For which liability coverage is afforded under this Coverage Form.


Includes copyrighted material of ISOAA 4136 IL 01 15 Properties, Inc., with its permission.


ILLINOIS CHANGES

For a covered "auto" licensed or principally garaged in Illinois, this endorsement modifies insurance providedunder the following:


With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unlessmodified by the endorsement.

A. Changes in Liability Coverage

1. Paragraph A.1.b.(3) of the Who is an In-sured provision does not apply.

2. Our Limit of Insurance applies except that we will apply the limit shown in the Declarations to first provide the separate limits required by the Illinois Safety Re-sponsibility Law as follows:

a. $25,000 for "bodily injury" to any oneperson caused by any one "accident",

b. $50,000 for "bodily injury" to two ormore persons caused by any one "accident", and

c. $20,000 for "property damage" caused by any one "accident".

This provision will not change our total Limit of Insurance.

B. Changes in Physical Damage Coverage

The following is added to the Limit of Insur-ance provision with respect to repair or re-placement resulting in better than like kind or quality and supercedes any provision to the contrary:

3. We may deduct for betterment if:

a. The deductions reflect a measurable decrease in market value attributable to the poorer condition of, or prior damage to, the vehicle.

b. The deductions are for prior wear and tear, missing parts and rust damagesthat is reflective of the general overall condition of the vehicle considering its age. In this event, deductions may not exceed $500.

C. Changes in Conditions

The Other Insurance condition is changed by the addition of the following:

Liability Coverage provided by this Coverage Form for any "auto" you do not own is primaryif:

1. The "auto" is owned or held for sale or lease by a new or used vehicle dealer-ship;

2. The "auto" is operated by an "insured"with the permission of the dealership de-scribed in Paragraph 1. while your "auto"is being repaired or evaluated; and

3. The Limit of Insurance for Liability Cover-age under this policy is at least:

a. $100,000 for "bodily injury" to any one person caused by any one "accident",

b. $300,000 for "bodily injury" to two or more persons caused by any one "accident", and

c. $50,000 for "property damage" caused by any one "accident".


AA 4168 IL 01 15

UNINSURED/UNDERINSURED MOTORISTSPROTECTION OPTION SELECTION FORM - ILLINOIS

The laws of Illinois require that automobile liability insurance policies offer Uninsured/Underinsured Motorists Coverage limits equal to the Bodily Injury Limits of the policy to which the coverage attaches. You may, however, select coverage at a lower limit.

YOU ARE ELECTING TO PURCHASE UNINSURED MOTORISTS LIMITS LESS THAN YOUR BODILYINJURY LIABILITY LIMITS WHEN YOU SIGN THIS FORM.

Uninsured Motorists Coverage provides for payment of certain benefits for damages caused by owners or operators of uninsured motor vehicles because of bodily injury or death resulting therefrom.

Underinsured Motorists Coverage provides for payment of certain benefits for damages caused by owners oroperators of underinsured motor vehicles because of bodily injury or death resulting therefrom.

An Underinsured motor vehicle is a vehicle to which a bodily injury policy or bond applies at the time of theaccident but its limit for bodily injury liability is less than the limit of liability for this coverage.

Such benefits may include payments for certain medical expenses, lost wages and pain and suffering, subjectto limitations and conditions in the policy.

Uninsured/Underinsured Motorist options are available for a modest premium: PLEASE CONTACT YOUR AGENT for the exact cost.

PLEASE SELECT ONE OF THE FOLLOWING:

I select Uninsured/Underinsured Motorists Coverage at the following limits which are lower than theBodily Injury Liability Limits of my policy.

Thousand Dollars

Split Limit Single Limit

LIMITS OF LIABILITY ¨ *25/50 ¨ 50*¨ 50/100 ¨ 100¨ 100/300 ¨ 300¨ Other ¨ Other

Attached to and forming a part of Policy Number and any subsequent renewals, reinstatements, reissuance, replacements, substitutions or amendments of my policy unless I request otherwise in writing

I intend that my selection will apply to me and all other persons or organizations that may be eligible forcoverage under this policy.

DATE

INSURED'S SIGNATURE

NOTE: A. *Underinsured Motorist Coverage does not apply unless Uninsured Motorist Coverage limitsexceed the minimum Financial Responsibility Limits of $25,000 each person/$50,000 each occurrence or $50,000 Single Limit Liability.

B. Please refer to form AA 4046 IL for information regarding "Uninsured Motorist Property Damage".

EBA 049 72 16


AA 4263 IL 04 10


OFFICE OF FOREIGN ASSETS CONTROL (OFAC)COMPLIANCE ENDORSEMENT


BUSINESS AUTO COVERAGE FORMGARAGE COVERAGE FORM

SECTION IV - BUSINESS AUTO CONDITIONS, B. General Conditions of the BUSINESS AUTOCOVERAGE FORM and SECTION V - GARAGE CONDITIONS, B. General Conditions of the GARAGECOVERAGE FORM are amended to include the following:

Office of Foreign Assets Control (OFAC) Compliance

Whenever insurance coverage provided by this policy would be in violation of any United States economic or trade sanctions, such insurance coverage will not be provided under this policy.





BUSINESS AUTO COVERAGE FORMBUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORMGARAGE COVERAGE FORMMOTOR CARRIER COVERAGE FORMTRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unlessmodified by the endorsement.

A. The Cancellation Common Policy Condition isreplaced by the following:

CANCELLATION

a. The first Named Insured shown in the Dec-larations may cancel this policy by mailingus advance written notice of cancellation.

b. When this policy is in effect 61 days or moreor is a renewal or continuation policy, wemay cancel only for one or more of the fol-lowing reasons by mailing you written noticeof cancellation stating the reasons for can-cellation.

(1) Nonpayment of premium.

(2) The policy was obtained through a ma-terial misrepresentation.

(3) Any "insured" has violated any of theterms and conditions of the policy.

(4) The risk originally accepted hasmeasurably increased.

(5) Certification to the Director of Insur-ance of the loss of reinsurance by theinsurer which provided coverage to usfor all or a substantial part of theunderlying risk insured.

(6) A determination by the Director of In-surance that the continuation of thepolicy could place us in violation of theIllinois insurance laws.

c. If we cancel for nonpayment of premium,we will mail you at least 10 days written no-tice.

d. If this policy is cancelled for other than non-payment of premium and the policy is in ef-fect:

(1) 60 days or less, we will mail you atleast 30 days written notice.

(2) 61 days or more, we will mail you atleast 60 days written notice.

e. If this policy in cancelled, we will send youany premium refund due. If we cancel, therefund will be pro rata. If you cancel, the re-fund may be less than pro rata. The can-cellation will be effective even if we have notmade or offered a refund.

f. The effective date of cancellation stated inthe notice shall become the end of the pol-icy period.

g. Our notice of cancellation will state the rea-son for cancellation.

h. A copy of the notice will also be sent to youragent or broker and the loss payee.

B. The following is added and supersedes any pro-vision to the contrary:

NONRENEWAL

If we decide not to renew or continue this policy,we will mail you, your agent or broker and theloss payee written notice, stating the reason fornonrenewal, at least 60 days before the end ofthe policy period. If we offer to renew or con-tinue and you do not accept, this policy will ter-minate at the end of the current policy period.Failure to pay the required renewal or continua-tion premium when due shall mean that youhave not accepted our offer.

If we fail to mail proper written notice of non-renewal and you obtain other insurance, thispolicy will end on the effective date of that insur-ance.

C. Mailing of Notices

We will mail cancellation and nonrenewal no-tices to the last addresses known to us. Proofof mailing will be sufficient proof of notice.

CA 02 70 08 94 Copyright, Insurance Services Office, Inc., 1994


THIS COVERAGE PART PROVIDES CLAIMS-MADE COVERAGE, WHICH APPLIES ONLY TO "CLAIMS" FIRST MADE DURING THE "POLICY PERIOD" OR ANY APPLICABLE EXTENDED REPORTING PERIOD. THE LIMIT OF INSURANCE TO PAY DAMAGES OR SETTLEMENTS WILL BE REDUCED AND MAY BE EXHAUSTED BY"DEFENSE COSTS", AND "DEFENSE COSTS" WILL BE APPLIED AGAINST THEDEDUCTIBLE. IN NO EVENT WILL WE BE LIABLE FOR "DEFENSE COSTS" OR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT IN EXCESS OF THE LIMIT OFINSURANCE. READ THE ENTIRE POLICY CAREFULLY.

Attached to and forming part of POLICY NUMBER: Effective Date

A Stock Insurance Company

CINCINNATI DATA DEFENDER™ COVERAGE PARTDECLARATIONS

THE CINCINNATI INSURANCE COMPANY

EPP 049 72 16 07-20-2019

Comm Dec try adI i the iame un oth en mla st in cy les er he d d as onss isan e ureName arsns pe Polis rationap there.

Retroactive Date:Limits of Insurance and Deductible

Insuring AgreementAnnual

Aggregate Sublimit DeductibleA Response Expenses $ $

Forensic IT Review $Legal Review $PR Services $

B Defense and Liability $ $Regulatory Fines andPenalties

$

PCI Fines andPenalties

$

C Identity Recovery $ $Lost Wages andChild and Elder Care

$

Mental HealthCounseling

$

MiscellaneousUnnamed Costs

$

TOTAL ANNUAL PREMIUM $

07-20-2018

50,000 1,00025,00025,00025,000

50,000 1,00025,000

25,000

25,000 2505,000

1,000

1,000

143

mime

umPerngdedO Rnta

Preti

:-tenme

iodporel Explel SupO

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m:rtl Sup

TeiodPerten naptioingrRepona dedl Exntaptio

281 YEAR562 YEAR743 YEAR934 YEAR1025 YEAR1116 YEAR

HIS CORSEMENTR ENDO :ORMS AND/O E PARTVERAGE TS APPLICABLFO TCINCINNATI DATA DEFENDER™ COVERAGE FORMHC102 01/18ILLINOIS CHANGES - CINCINNATI DATA DEFENDER™ COVERAGE PARTHC460IL 01/18

1801 250HC Page ofEPP 049 72 16

1 2


1801 250HC Page ofEPP 049 72 16

2 2


Includes copyrighted material of InsuranceHC 102 01 18 Services Office, Inc. with its permission. Page 1 of 17

CINCINNATI DATA DEFENDER™ COVERAGE FORMTABLE OF CONTENTS

Coverage Part Provision: Begins on Page:

Preamble.......................................................................................................................................................3

SECTION I - COVERAGES...........................................................................................................................3

A. Insuring Agreements............................................................................................................................3

1. Insuring Agreement A - Response Expenses ............................................................................32. Insuring Agreement B - Defense and Liability ...........................................................................53. Insuring Agreement C - Identity Recovery .................................................................................5

B. Exclusions ............................................................................................................................................5

1. Applicable to Insuring Agreements A and B ...................................................................................5

a. Contractual Liability ..............................................................................................................5b. Criminal Investigations or Proceedings..............................................................................5c. Deficiency Correction............................................................................................................5d. Extortion .................................................................................................................................6e. Fraudulent, Dishonest or Criminal Acts..............................................................................6f. Non-monetary Relief..............................................................................................................6g. Previously Reported Data Compromises ............................................................................6h. Prior Data Compromises.......................................................................................................6i. Prior or Pending Litigation ...................................................................................................6j. Reckless Disregard ...............................................................................................................6k. Uninsurable ............................................................................................................................6l. Willful Complicity...................................................................................................................6

2. Applicable to Insuring Agreement C................................................................................................6

a. Fraudulent, Dishonest or Criminal Acts..............................................................................6b. Professional or Business Identity........................................................................................6c. Unreported Identity Theft......................................................................................................6

3. Applicable to Insuring Agreements A, B and C...............................................................................6

a. Nuclear....................................................................................................................................6b. War ..........................................................................................................................................6

SECTION II - LIMITS OF INSURANCE AND DEDUCTIBLE .......................................................................7

SECTION III - DEFENSE AND SETTLEMENT.............................................................................................8

SECTION IV - CONDITIONS ........................................................................................................................8

1. Bankruptcy ....................................................................................................................................82. Due Diligence ................................................................................................................................83. Duties in the Event of a Claim, Regulatory Proceeding or Loss ..............................................94. Help Line ......................................................................................................................................105. Legal Action Against Us .............................................................................................................106. Legal Advice ................................................................................................................................107. Liberalization...............................................................................................................................108. Office of Foreign Assets Control (OFAC) Compliance............................................................119. Other Insurance...........................................................................................................................1110. Pre-Notification Consultation ....................................................................................................1111. Representations..........................................................................................................................1112. Separation of Insureds ...............................................................................................................1113. Service Providers........................................................................................................................1114. Services .......................................................................................................................................1115. Subrogation .................................................................................................................................1216. Valuation - Settlement ................................................................................................................1217. When We Do Not Renew ............................................................................................................12



TABLE OF CONTENTS (CONT'D)

Coverage Part Provision: Begins on Page:

SECTION V - EXTENDED REPORTING PERIODS...................................................................................12

SECTION VI - DEFINITIONS ......................................................................................................................13

1. "Affected individual".......................................................................................................................132. "Authorized representative"...........................................................................................................133. "Claim" ..........................................................................................................................................134. "Coverage term"............................................................................................................................135. "Coverage territory".......................................................................................................................146. "Data compromise liability"............................................................................................................147. "Defense costs".............................................................................................................................148. "Employee"....................................................................................................................................149. "Executive"....................................................................................................................................1510. "Identity recovery case manager"..................................................................................................1511. "Identity recovery expenses".........................................................................................................1512. "Identity recovery insured".............................................................................................................1613. "Identity theft" ................................................................................................................................1614. "Insured"........................................................................................................................................1615. "Loss"............................................................................................................................................1616. "Named insured" ...........................................................................................................................1617. "Personal data compromise".........................................................................................................1618. "Personally identifying information"...............................................................................................1719. "Personally sensitive information".................................................................................................1720. "Policy period" ...............................................................................................................................1721. "Regulatory proceeding"................................................................................................................17



CINCINNATI DATA DEFENDER™ COVERAGE FORM

THIS COVERAGE PART PROVIDES CLAIMS-MADE COVERAGE, WHICH APPLIES ONLY TO "CLAIMS"FIRST MADE DURING THE "POLICY PERIOD" OR ANY APPLICABLE EXTENDED REPORTING PERIOD. THE LIMIT OF INSURANCE TO PAY DAMAGES OR SETTLEMENTS WILL BE REDUCED AND MAY BE EXHAUSTED BY "DEFENSE COSTS", AND "DEFENSE COSTS" WILL BE APPLIED AGAINST THE DE-DUCTIBLE. IN NO EVENT WILL WE BE LIABLE FOR "DEFENSE COSTS" OR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT IN EXCESS OF THE LIMIT OF INSURANCE. READ THE ENTIRE POLICYCAREFULLY.

Various provisions in this Coverage Part restrict coverage. Read the entire Coverage Part carefully to determine rights, duties and what is and is not covered.

Throughout this Coverage Part the words "you" and"your" refer to the "named insured" shown in the Declarations. The words "we", "us" and "our" refer to the company providing this insurance.

Other words and phrases that appear in quotationmarks have special meaning. Refer to Section VI -Definitions.

SECTION I - COVERAGES

A. Insuring Agreements

Coverage is provided under the following In-suring Agreements for which an Aggregate Limit of Insurance is shown in the Declara-tions:

1. Insuring Agreement A - Response Ex-penses

a. Coverage under Insuring Agreement A - Response Expenses applies only if all of the following conditions aremet:

(1) There has been a "personal data compromise"; and

(2) Such "personal data compro-mise" is first discovered by you during the "coverage term"; and

(3) Such "personal data compro-mise" took place in the "cover-age territory"; and

(4) Such "personal data compro-mise" is reported to us within 60 days after the date it is first dis-covered by you.

b. If the conditions listed in a. abovehave been met, then we will provide coverage for the following expenseswhen they arise directly from the "personal data compromise" de-scribed in a. above and are neces-sary and reasonable. Coverages (4)and (5) apply only if there has been a notification of the "personal data

compromise" to "affected individuals"as covered under coverage (3).

(1) Forensic IT Review

Professional information tech-nologies review if needed to de-termine, within the constraints ofwhat is possible and reasonable, the nature and extent of the"personal data compromise" andthe number and identities of the"affected individuals".

This does not include costs toanalyze, research or determineany of the following:

(a) Vulnerabilities in systems,procedures or physical se-curity;

(b) Compliance with PCI or oth-er industry security stand-ards; or

(c) The nature or extent of lossor damage to data that isnot "personally identifying in-formation" or "personally sensitive information".

If there is reasonable cause tosuspect that a covered "personal data compromise" may have oc-curred, we will pay for costs cov-ered under Forensic IT Review, even if it is eventually deter-mined that there was no covered"personal data compromise". However, once it is determinedthat there was no covered "per-sonal data compromise", we will not pay for any further costs.

(2) Legal Review

Professional legal counsel re-view of the "personal data com-promise" and how you shouldbest respond to it. If there is rea-sonable cause to suspect that acovered "personal data com-promise" may have occurred, wewill pay for costs covered under



Legal Review, even if it is even-tually determined that there was no covered "personal data com-promise". However, once it is de-termined that there was no cov-ered "personal data compro-mise", we will not pay for any fur-ther costs.

(3) Notification to Affected Indi-viduals

We will pay your necessary andreasonable costs to provide noti-fication of the "personal data compromise" to "affected indi-viduals".

(4) Services to Affected Individu-als

We will pay your necessary andreasonable costs to provide thefollowing services to "affected individuals":

(a) The following services apply to any "personal data com-promise".

1) Informational Materials

A packet of loss pre-vention and customer support information.

2) Help Line

A toll-free telephoneline for "affected indi-viduals" with questionsabout the "personal da-ta compromise". Where applicable, the line can also be used to request additional services as listed in (b)1) and 2)below.

Note, calls by "affected individuals" or their rep-resentatives to the Help Line do not constitute the making of a "claim"under Insuring Agree-ment B - Defense andLiability.

(b) The following additional ser-vices apply to "personal da-ta compromise" events in-volving "personally identify-ing information".

1) Credit Report and Monitoring

A credit report and an electronic service au-tomatically monitoring for activities affectingan individual's credit records. This service is subject to the "affected individual" enrolling forthis service with the designated service pro-vider.

2) Identity RestorationCase Management

As respects any "af-fected individual" who isor appears to be a vic-tim of "identity theft"that may reasonablyhave arisen from the "personal data com-promise", the servicesof an identity restorationprofessional who will assist that "affected in-dividual" through theprocess of correcting credit and other recordsand, within the con-straints of what is pos-sible and reasonable, restoring control over his or her personal identity.

(5) PR Services

We will pay the necessary andreasonable fees and expensesyou incur, with our prior writtenconsent, for a professional publicrelations firm review of and re-sponse to the potential impact ofthe "personal data compromise"on your business relationships.We will only pay for such feesand expenses when such a pub-lic relations firm review and re-sponse is reasonably necessaryto avert or mitigate material damage to your business rela-tionships from the "personal datacompromise".

Such fees and expenses includecosts to implement public rela-tions recommendations of suchpublic relations firm. However, when such recommendations in-clude advertising and special promotions designed to retainyour relationship with "affected individuals", we will not pay for promotions:



(a) Provided to any of your "ex-ecutives" or "employees"; or

(b) Costing more than $25 per"affected individual".

2. Insuring Agreement B - Defense andLiability

a. Coverage under Insuring Agreement B - Defense and Liability applies onlyif all of the following conditions are met:

(1) During the "coverage term" or any applicable Extended Report-ing Period, you first receive no-tice of a "claim" or "regulatory proceeding" which arises from a "personal data compromise"that:

(a) Took place on or after theRetroactive Date shown inthe Declarations and beforethe end of the "policy peri-od";

(b) Took place in the "coverage territory"; and

(c) Was submitted to us and covered under InsuringAgreement A - Response Expenses; and

(2) Such "claim" or "regulatory pro-ceeding" is reported to us as soon as practicable, but in noevent more than 60 days after the date it is first received by you.

b. If the conditions listed in a.above have been met, then wewill pay on behalf of the "insured""defense costs" and "data com-promise liability" directly arising from the "claim" or "regulatory proceeding".

c. All "claims" or "regulatory proceed-ings" caused by a single "personal data compromise" will be deemed to have been made at the time that no-tice of the first of those "claims" or "regulatory proceedings" is receivedby you.

3. Insuring Agreement C - Identity Recov-ery

a. Coverage under Insuring Agreement C - Identity Recovery applies only ifall of the following conditions are met:

(1) There has been an "identitytheft" involving the personalidentity of an "identity recovery insured" under this Coverage Part; and

(2) Such "identity theft" is first dis-covered by the "identity recoveryinsured" during the "coverage term"; and

(3) Such "identity theft" took place in the "coverage territory"; and

(4) Such "identity theft" is reported to us within 60 days after it isfirst discovered by the "identityrecovery insured".

b. If the conditions listed in a. abovehave been met, then we will provide the following to the "identity recoveryinsured":

(1) Services of an "identity recovery case manager" as needed to re-spond to the "identity theft"; and

(2) Reimbursement of necessary and reasonable "identity recov-ery expenses" incurred as a di-rect result of the "identity theft".

B. Exclusions

1. Applicable to Insuring Agreements A andB only:

This insurance does not apply to "loss" or "claims" based upon, attributable to or arising out of:

a. Contractual Liability

An "insured's" assumption of liability by contract or agreement, whether oral or written. However, this exclu-sion shall not apply to:

(1) Any liability that an "insured"would have incurred in the ab-sence of such contract or agreement; or

(2) Any PCI fines or penalties explic-itly covered under InsuringAgreement B – Defense and Li-ability.

b. Criminal Investigations or Pro-ceedings

Any criminal investigations or pro-ceedings.

c. Deficiency Correction

Costs to research or correct any defi-ciency. This includes, but is not lim-ited to, any deficiency in your sys-



tems, procedures or physical security that may have contributed to a "per-sonal data compromise".

d. Extortion

Any extortion or blackmail. This in-cludes, but is not limited to, ransom payments and private security assis-tance.

e. Fraudulent, Dishonest or Criminal Acts

Any criminal, fraudulent or dishonest act, error or omission, or any inten-tional or knowing violation of the lawby the "insured".

f. Non-monetary Relief

That part of any "claim" seeking anynon-monetary relief.

g. Previously Reported Data Com-promises

The same facts alleged or contained in any "claim" which has been report-ed, or in any circumstances of whichnotice has been given, under any in-surance policy of which this Cover-age Part is a renewal or replacement.

h. Prior Data Compromises

Any "personal data compromise" firstoccurring before the Retroactive Date shown in the Declarations, or any "claim" arising from a "personal data compromise" that first occurred prior to the Retroactive Date shown in the Declarations.

i. Prior or Pending Litigation

Any "claim" or other proceedingagainst an "insured" which was pend-ing or existed prior to the "coverage term", or arising out of the same orsubstantially the same facts, circum-stances or allegations which are the subject of, or the basis for, such "claim" or other proceeding.

j. Reckless Disregard

Your reckless disregard for the secu-rity of "personally identifying infor-mation" or "personally sensitive in-formation" in your care, custody orcontrol.

k. Uninsurable

Any amount not insurable under ap-plicable law.

l. Willful Complicity

The "insured's" intentional or willful complicity in a "personal data com-promise".

2. Applicable to Insuring Agreement C only:


a. Fraudulent, Dishonest or Criminal Acts

Any fraudulent, dishonest or criminal act by an "identity recovery insured"or any person aiding or abetting an "identity recovery insured", or by any "authorized representative" of an "identity recovery insured", whether acting alone or in collusion with oth-ers. However, this exclusion shall not apply to the interests of an "identityrecovery insured" who has noknowledge of or involvement in such fraud, dishonesty or criminal act.

b. Professional or Business Identity

The theft of a professional or busi-ness identity.

c. Unreported Identity Theft

An "identity theft" that is not reportedin writing to the police.

3. Applicable to Insuring Agreements A, Band C:

This insurance does not apply to "loss" or "claims" based upon, attributable to or arising out of:

a. Nuclear

Nuclear reaction or radiation or radi-oactive contamination, however caused.

b. War

(1) War, including undeclared or civ-il war or civil unrest;

(2) Warlike action by military force, including action hindering or de-fending against an actual or ex-pected attack, by any govern-ment, sovereign or other authori-ty using military personnel or other agents; or

(3) Insurrection, rebellion, revolu-tion, usurped power, or action taken by government authority inhindering or defending against any of these.



SECTION II - LIMITS OF INSURANCE AND DE-DUCTIBLE

A. Insuring Agreement A - Response Expenses:

1. The most we will pay under Insuring Agreement A - Response Expenses is the Response Expenses Limit of Insurance stated in the Declarations.

2. The Response Expenses Limit of Insur-ance is an annual aggregate limit. Thisamount is the most we will pay for the to-tal of all "loss" covered under Insuring Agreement A - Response Expenses aris-ing out of all "personal data compromise"events which are first discovered by you during the "coverage term". This limit ap-plies regardless of the number of "per-sonal data compromise" events discov-ered by you during that period.

3. A "personal data compromise" may be first discovered by you in one "coverage term" but cause covered "loss" in one or more subsequent "coverage terms". If so, all covered "loss" arising from such "per-sonal data compromise" will be subject tothe Response Expenses Limit of Insur-ance applicable to the "coverage term"when the "personal data compromise"was first discovered by you.

4. The most we will pay under Insuring Agreement A - Response Expenses for Forensic IT Review, Legal Review and PR Services coverages for "loss" arising fromany one "personal data compromise" isthe applicable sublimit for each of those coverages stated in the Declarations. These sublimits are part of, and not in ad-dition to, the Aggregate Limit of Insurance referenced in Paragraph 2. PR Servicescoverage is also subject to a limit per "af-fected individual" as described in Section I., A.1.b.(5) PR Services.

5. Coverage for Services to "affected indi-viduals" is limited to costs to provide such services for a period of up to one year from the date of the notification to the "af-fected individuals" or the period required by law, whichever is longer. Notwithstand-ing the foregoing, coverage for IdentityRestoration Case Management servicesinitiated within such period may continue for a period of up to one year from the date such Identity Restoration Case Man-agement services are initiated.

6. Response Expenses coverage is subject to the Response Expenses Deductible stated in the Declarations. You shall be responsible for such deductible amount as respects each "personal data com-promise" covered under this Coverage

Part. We may, at our option, pay any partor all of the deductible amount in order to respond effectively to a "personal data compromise" and, upon notification of theaction taken, you shall promptly reimburse us for such part of the deductible amount as has been paid by us.

B. Insuring Agreement B - Defense and Liability:

1. The most we will pay under Insuring Agreement B - Defense and Liability (oth-er than post-judgment interest) is the Limit of Insurance stated in the Declarations.

2. The Insuring Agreement B - Defense and Liability Limit of Insurance is an annual aggregate limit. This amount is the most we will pay for all "loss" covered under In-suring Agreement B - Defense and Liabil-ity (other than post-judgment interest)arising out of all "claims".

3. The most we will pay under Insuring Agreement B – Defense and Liability for "data compromise liability" and "defense costs" related to Regulatory Fines andPenalties and PCI Fines and Penaltiescoverages arising from any one "claim"or "regulatory proceeding" is the applicable sublimit for each of those coverages stat-ed in the Declarations. These sublimitsare part of, and not in addition to, theAggregate Limit of Insurance referenced in Paragraph 2.

4. The Defense and Liability Limit of Insur-ance for the Extended Reporting Periods(if applicable) shall be part of, and not in addition to, the Defense and Liability Limit for the immediately preceding "coverage term".

5. The Insuring Agreement B - Defense and Liability coverage is subject to the Deduct-ible stated in the Declarations. You shall be responsible for such deductible amount as respects each "claim" or "regu-latory proceeding" covered under thisCoverage Part. We may, at our option, pay any part or all of the deductible amount to defend or effect settlement of any "claim", "loss" or "regulatory proceed-ing" and, upon notification of the actiontaken, you shall promptly reimburse us for such part of the deductible amount as hasbeen paid by us.

C. Insuring Agreement C - Identity Recovery:

1. Case Management Service is available asneeded for any one "identity theft" for up to 12 consecutive months from the incep-tion of the service. Expenses we incur to provide Case Management Service do not reduce the Limit of Insurance available for "identity recovery expenses".



2. Coverage under Insuring Agreement C -Identity Recovery is subject to the Annual Aggregate Limit of Insurance stated in the Declarations per "identity recovery in-sured". Regardless of the number of"identity theft" incidents, this limit is themost we will pay for the total of all "loss"arising out of all "identity thefts" suffered by one "identity recovery insured" which are first discovered by the "identity recov-ery insured" during the "coverage term". Ifan "identity theft" is first discovered in one "coverage term" and continues into other "coverage terms", all "loss" arising from such "identity theft" will be subject to theaggregate Limit of Insurance applicable tothe "coverage term" when the "identitytheft" was first discovered.

3. Legal costs as provided under Item d. ofthe definition of "identity recovery expens-es" are part of, and not in addition to, the aggregate limit described in Paragraph 2.

4. Item e. (Lost Wages) and Item f. (Child and Elder Care Expenses) of the defini-tion of "identity recovery expenses" arejointly subject to the sublimit stated in theDeclarations. This sublimit is part of, and not in addition to, the aggregate Limit of Insurance described in Paragraph 2. Cov-erage is limited to wages lost and ex-penses incurred within 12 months after the first discovery of the "identity theft" by the "identity recovery insured".

5. Item g. (Mental Health Counseling) of thedefinition of "identity recovery expenses"is subject to the sublimit stated in the Declarations. This sublimit is part of, and not in addition to, the aggregate limit de-scribed in Paragraph 2. Coverage is lim-ited to counseling that takes place within 12 months after the first discovery of the "identity theft" by the "identity recovery in-sured".

6. Item h. (Miscellaneous Unnamed Costs)of the definition of "identity recovery ex-penses" is subject to the sublimit stated in the Declarations. This sublimit is part of, and not in addition to, the aggregate Limit of Insurance described in Paragraph 2.Coverage is limited to costs incurred with-in 12 months after the first discovery of the "identity theft" by the "identity recovery insured".

7. Coverage under Insuring Agreement C -Identity Recovery is subject to the IdentityRecovery Deductible stated in the Decla-rations. Each "identity recovery insured"shall be responsible for such deductible amount only once during each "coverage term". This deductible applies only to"identity recovery expenses".

The Limits of Insurance apply separately to each"coverage term".

SECTION III - DEFENSE AND SETTLEMENT

The provisions contained within this Section apply only to Insuring Agreement B - Defense and Liabil-ity.

1. We will have the right and duty to select coun-sel and defend the "insured" against any "claim" or "regulatory proceeding" covered by Insuring Agreement B - Defense and Liability,regardless of whether the allegations of such "claim" or "regulatory proceeding" are ground-less, false or fraudulent. However, we shall have no duty to defend the "insured" against any "claim" or "regulatory proceeding" seeking damages or other relief not insured by Insuring Agreement B - Defense and Liability.

2. We may, with your written consent, make anysettlement of a "claim" or "regulatory proceed-ing" which we deem reasonable. If you with-hold consent to such settlement, our liability forall "loss" resulting from such "claim" will notexceed the amount for which we could have settled such "claim" or "regulatory proceeding"plus "defense costs" incurred as of the datewe proposed such settlement in writing to you.

3. We shall not be obligated to pay any "loss", or to defend or continue to defend any "claim" or "regulatory proceeding", after the InsuringAgreement B - Defense and Liability Limit ofInsurance has been exhausted.

4. We shall pay all interest on that amount of anyjudgment within the Insuring Agreement B -Defense and Liability Limit of Insurance which accrues:

a. After entry of judgment; and

b. Before we pay, offer to pay or deposit in court that part of the judgment within the Insuring Agreement B - Defense and Lia-bility Limit of Insurance or, in any case, before we pay or offer to pay the entire In-suring Agreement B - Defense and Liabil-ity Limit of Insurance.

These interest payments shall be in addition to and not part of the Defense and Liability Limit.

SECTION IV – CONDITIONS

1. Bankruptcy

Your bankruptcy, or the bankruptcy of your es-tate if you are a sole proprietor, will not relieve us of our obligations under this Coverage Part.

2. Due Diligence

You agree to use due diligence to prevent and mitigate "loss" covered under this CoveragePart. This includes, but is not limited to, com-plying with, and requiring your vendors to



comply with, reasonable and industry-accepted protocols for:

a. Providing and maintaining appropriate physical security for your premises, com-puter systems and hard copy files;

b. Providing and maintaining appropriate computer and Internet security;

c. Maintaining and updating at appropriate intervals backups of computer data;

d. Protecting transactions, such as pro-cessing credit card, debit card and checkpayments; and

e. Appropriate disposal of files containing "personally identifying information" or "personally sensitive information", includ-ing shredding hard copy files and destroy-ing physical media used to store electron-ic data.

3. Duties in the Event of a Claim, Regulatory Proceeding or Loss

a. If, during the "coverage term", the "in-sured" first becomes aware of any cir-cumstance that could reasonably be ex-pected to give rise to a "claim" or "regula-tory proceeding", the "insured" may give written notice to us. The notice must be made as soon as practicable, but in noevent more than 60 days after the date the circumstance is first discovered by the"insured", must be made during the "cov-erage term" and must include:

(1) The specific details, including the date, of the circumstance;

(2) The alleged injuries or damage sus-tained or which may be sustained;

(3) The names of potential claimants; and

(4) The manner in which the "insured"first became aware of the circum-stance.

Any subsequent "claim" or "regulatory proceeding" arising out of any circum-stance which is the subject of such a writ-ten notice will be deemed to have been made at the time written notice in compli-ance with these requirements was first re-ceived by us.

b. If a "claim" or "regulatory proceeding" isbrought against any "insured", you must:

(1) Immediately record the specifics ofthe "claim" or "regulatory proceeding"and the date received; and

(2) Provide us with written notice, assoon as practicable, but in no event

more than 60 days after the date the "claim" or "regulatory proceeding" isfirst received by you.

(3) Immediately send us copies of any demands, notices, summonses or le-gal papers received in connection with the "claim" or "regulatory pro-ceeding";

(4) Authorize us to obtain records and other information;

(5) Cooperate with us in the investiga-tion, settlement or defense of the "claim" or "regulatory proceeding";

(6) Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to you because of "loss" or "de-fense costs" to which this insurance may also apply; and

(7) Not take any action, or fail to take any required action, that prejudices your rights or our rights with respect to such "claim" or "regulatory proceed-ing".

c. In the event of a "personal data compro-mise" covered under Insuring Agreement A - Response Expenses, you must see that the following are done:

(1) Notify the police if a law may have been broken.

(2) Notify us as soon as practicable, butin no event more than 60 days after the "personal data compromise". In-clude a description of any property involved.

(3) As soon as possible, give us a de-scription of how, when and where the "personal data compromise" oc-curred.

(4) As often as may be reasonably re-quired, permit us to:

(a) Inspect the property proving the"personal data compromise";

(b) Examine your books, records, electronic media and recordsand hardware;

(c) Take samples of damaged andundamaged property for inspec-tion, testing and analysis; and

(d) Make copies from your books, records, electronic media andrecords and hardware.

(5) Send us signed, sworn proof of losscontaining the information we request



to investigate the "personal datacompromise". You must do this within 60 days after our request. We will supply you with the necessary forms.

(6) Cooperate with us in the investigation of the "personal data compromise" or settlement of the "loss".

(7) If you intend to continue your busi-ness, you must resume all or part ofyour operations as quickly as possi-ble.

(8) Make no statement that will assume any obligation or admit any liability, for any loss for which we may be lia-ble, without our prior written consent.

(9) Promptly send us any legal papers or notices received concerning the "per-sonal data compromise" or "loss".

d. We may examine any "insured" under oath, while not in the presence of any oth-er "insured" and at such times as may be reasonably required, about any matter re-lating to this insurance or the "claim" or "loss", including an "insured's" books and records. In the event of an examination, an "insured's" answers must be signed.

e. No "insured" may, except at their owncost, voluntarily make a payment, assumeany obligation, or incur any expense with-out our prior written consent.

4. Help Line

For assistance, the "identity recovery insured"should call the Identity Recovery Help Lineat 1-866-219-9831. The Identity Recovery Help Line can provide the "identity recovery insured" with:

a. Information and advice for how to respond to a possible "identity theft"; and

b. Instructions for how to submit a service request for Case Management Service and/or a claim form for Expense Reim-bursement Coverage.

In some cases, we may provide Case Management services at our expense to an "identity recovery insured" prior to adetermination that a covered "identitytheft" has occurred. Our provision of suchservices is not an admission of liabilityunder the policy. We reserve the right to deny further coverage or service if, after investigation, we determine that a covered "identity theft" has not occurred.

As respects Expense Reimbursement Coverage, the "identity recovery insured"must send to us, within 60 days after our request, receipts, bills or other records

that support his or her claim for "identityrecovery expenses".


a. No person or organization has a right:

(1) To join us as a party or otherwise bring us into a suit asking for damag-es from an "insured"; or

(2) To sue us under this Coverage Part unless all of its terms have been fully complied with.

A person or organization may sue us to recover on an agreed settlement or on a final judgment against an "insured"; but we will not be liable for damages that are not payable under this Coverage Part, or that are in excess of the applicable Ag-gregate Limit of Insurance. An agreed set-tlement means a settlement and release of liability signed by us, the first "namedinsured" and the claimant or the claim-ant's legal representative.

b. You may not bring any legal action against us involving "loss":

(1) Unless you have complied with all the terms of this insurance;

(2) Until 90 days after you have filed proof of "loss" with us; and

(3) Unless brought within 2 years from the date you reported the "claim" or "loss" to us.

If any limitation in this condition is prohibited by law, such limitation is amended so as to equal the minimum period of limitation provided bysuch law.

6. Legal Advice

We are not your legal advisor. Our determina-tion of what is or is not covered under this Coverage Part does not represent advice or counsel from us about what you should or should not do.

7. Liberalization

If, within 60 days prior to the beginning of thisCoverage Part or during the "policy period", we make any changes to any forms or endorse-ments of this Coverage Part for which there is currently no separate premium charge, and that change provides more coverage than this Coverage Part, the change will automaticallyapply to this Coverage Part at the latter of:

a. The date we implemented the change in your state; or




will be considered as included until the end ofthe current "policy period". We will make no additional premium charge for this additional coverage during the interim.

8. Office of Foreign Assets Control (OFAC) Compliance

Whenever insurance coverage provided bythis policy would be in violation of any United States economic or trade sanctions, such in-surance coverage shall be null and void.

9. Other Insurance

a. If any covered "loss" is covered by any other valid policy, then this Coverage Part shall apply only in excess of the amount of any deductible, retention and limit of in-surance under such other policy whether such other policy is stated to be primary, contributory, excess, contingent or other-wise, unless such other policy is written specifically excess of this Coverage Part by reference in such other policy to thispolicy's policy number.

b. When this insurance is excess, we will have no duty to defend the "insured"against any "claim" if any other insurer has a duty to defend the "insured" against that "claim". But we will have the right toassociate in the defense and control of any "claim" that we reasonably believe is likely to involve the insurance provided under this Coverage Part. If no other in-surer defends, we will undertake to do so, but we will be entitled to the "insured's"rights against all those other insurers.

10. Pre-Notification Consultation

You agree to consult with us prior to the issu-ance of notification to "affected individuals". We assume no responsibility under this Cov-erage Part for any services promised to "af-fected individuals" without our prior agree-ment. If possible, this pre-notification consulta-tion will also include the designated service provider(s) as agreed to under Condition 12.Service Providers. You must provide the fol-lowing at our pre-notification consultation withyou:

a. The exact list of "affected individuals" to be notified, including contact information.

b. Information about the "personal datacompromise" that may appropriately be communicated with "affected individuals".

c. The scope of services that you desire for the "affected individuals". For example, coverage may be structured to provide fewer services in order to make those services available to more "affected indi-

viduals" without exceeding the availableResponse Expenses Limit.

11. Representations

You represent that all information and state-ments contained in any application or ques-tionnaire submitted in connection with this Coverage Part are true, accurate and com-plete. All such information and statements are the basis for our issuing this Coverage Part and shall be considered as incorporated into and shall constitute a part of this Coverage Part. Misrepresentation or omission of any ma-terial fact may be grounds for the rescission of this Coverage Part.


Except with respect to the applicable Limit of Insurance, and any rights or duties specifically assigned in this Coverage Part or the policy to which it is attached, to the first "named in-sured", this insurance applies separately toeach "insured" against whom a "claim" ismade.

13. Service Providers

a. We will only pay under this Coverage Part for services that are provided by service providers approved by us. You must ob-tain our prior approval for any service pro-vider whose expenses you want covered under this Coverage Part. We will not un-reasonably withhold such approval.

b. Prior to the Pre-Notification Consultation described in the Pre-Notification Consulta-tion Condition above, you must come to agreement with us regarding the service provider(s) to be used for the Notification to Affected Individuals and Services to Af-fected Individuals. We will suggest a ser-vice provider. If you prefer to use an alter-nate service provider, our coverage issubject to the following limitations:

(1) Such alternate service provider must be approved by us;

(2) Such alternate service provider must provide services that are reasonably equivalent or superior in both kind and quality to the services that would have been provided by the service provider we had suggested; and

(3) Our payment for services provided by any alternate service provider will not exceed the amount that we would have paid using the service provider we had suggested.

14. Services

The following conditions apply as respects anyservices provided to you or any "affected indi-



vidual" or "identity recovery insured" by us, ourdesignees or any service firm paid for in whole or in part under this Coverage Part:

a. The effectiveness of such services de-pends on the cooperation and assistance of you, "affected individuals" and "identityrecovery insureds".

b. All services may not be available or appli-cable to all individuals. For example, "af-fected individuals" and "identity recoveryinsureds" who are minors or foreign na-tionals may not have credit records that can be provided or monitored. Service in Canada will be different from service inthe United States and Puerto Rico in ac-cordance with local conditions.

c. We do not warrant or guarantee that the services will end or eliminate all problemsassociated with the covered events.

d. Except for the services of an "identity re-covery case manager" under Insuring Agreement C - Identity Recovery, whichwe will provide directly, you will have a di-rect relationship with the professional ser-vice firms paid for in whole or in part un-der this Coverage Part. Those firms workfor you.

15. Subrogation

With respect to any payment under this Cov-erage Part on behalf of any "insured", we shallbe subrogated to the "insured's" rights of re-covery to the extent of such payment. The "in-sured" shall execute all papers required and shall do everything necessary to secure and preserve such rights, including the execution of such documents necessary to enable us to bring suit in the "insured's" name. Any recover-ies, less the cost of obtaining them, will be dis-tributed as follows:

a. To you, until you are reimbursed for any "loss" you sustain that exceeds the sum of the applicable Aggregate Limit of Insur-ance and the Deductible Amount, if any;

b. Then to us, until we are reimbursed for the payment under this Coverage Part;

c. Then to you, until you are reimbursed for that part of the payment equal to the De-ductible Amount, if any.

16. Valuation - Settlement

All premiums, Limits of Insurance, Deductible Amounts, "loss" and any other monetaryamounts under this Coverage Part are ex-pressed and payable in the currency of the United States of America. If judgment is ren-dered, settlement is agreed to or another component of "loss" under this Coverage Part is expressed in any currency other than United

States of America dollars, payment under this Coverage Part shall be made in United Statesdollars at the rate of exchange published in The Wall Street Journal on the date the final judgment is entered, settlement amount is agreed upon, or the other component of "loss"is due, respectively.


If we decide not to renew this Coverage Part, we will mail or deliver to the first "named in-sured" shown in the Declarations written notice of the nonrenewal not less than 30 days before the expiration date.


SECTION V - EXTENDED REPORTING PERIODS

The provisions contained within this Section apply only to Insuring Agreement B - Defense and Liabil-ity.

1. You shall have the right to the Extended Re-porting Periods described in this section, in theevent that:

a. You or we cancel this Coverage Part;

b. You or we refuse to renew this Coverage Part; or

c. We renew this Coverage Part on other than a claims-made basis or with a retro-active date later than the Retroactive Date shown in the Declarations.

2. If an event as specified in Paragraph 1. hasoccurred, you shall have the right to the follow-ing:

a. An Automatic Extended Reporting Period of 90 days after the effective date of can-cellation or nonrenewal at no additional premium in which to give to us written no-tice of a "claim" or "regulatory proceeding"of which you first receive notice during said Automatic Extended Reporting Peri-od for any "personal data compromise"occurring on or after the Retroactive Date shown on the Declarations and before theend of the "policy period" and which isotherwise covered by this Coverage Part; and

b. Upon payment of the additional premium stated in the Declarations, a Supple-mental Extended Reporting Period for the term stated in the Supplemental Extended Reporting Period Endorsement will be provided immediately following the effec-tive date of cancellation or nonrenewal in which to give to us written notice of a "claim" or "regulatory proceeding" ofwhich you first receive notice during said Supplemental Extended Reporting Period



for any "personal data compromise" oc-curring on or after the Retroactive Date shown in the Declarations and before the end of the "policy period" and which isotherwise covered by this Coverage Part.

To obtain the Supplemental Extended Reporting Period, you must request it in writing and pay the additional premium due, within 60 days of the effective date of cancellation or nonrenewal. The additional premium for the Supplemental Extended Reporting Period shall be fully earned at the inception of the Supplemental Ex-tended Reporting Period. If we do not re-ceive the written request as required, you may not exercise this right at a later date.

c. The Defense and Liability Limit of Insur-ance for the Extended Reporting Periodsshall be part of, and not in addition to, theDefense and Liability Limit of Insurance for the immediately preceding "coverage term".

SECTION VI - DEFINITIONS

1. "Affected individual" means any person whose "personally identifying information" or "person-ally sensitive information" is lost, stolen, acci-dentally released or accidentally published by a "personal data compromise" covered under this Coverage Part. This definition is subject to the following provisions:

a. "Affected individual" does not include any business or organization. Only an individ-ual person may be an "affected individu-al".

b. An "affected individual" may reside any-where in the world.

2. "Authorized representative" means a person or entity authorized by law or contract to act on behalf of an "identity recovery insured".

3. "Claim":

a. Means:

(1) A civil proceeding in which it is al-leged that the claimant suffered damages arising from:

(a) A "personal data compromise"that was covered under InsuringAgreement A - Response Ex-penses section of this Coverage Part and in connection with which you submitted a claim tous and provided notifications andservices to "affected individuals"in consultation with us pursuant to Insuring Agreement A - Re-sponse Expenses; or

(b) The violation of a governmental statute or regulation arising from a "personal data compromise"that was covered under InsuringAgreement A - Response Ex-penses and in connection withwhich you submitted a claim tous and provided notifications andservices to "affected individuals"in consultation with us pursuant to Insuring Agreement A - Re-sponse Expenses.

(2) "Claim" includes:

(a) An arbitration proceeding inwhich such damages areclaimed and to which the "in-sured" must submit or doessubmit with our consent;

(b) Any other alternative disputeresolution proceeding in which such damages are claimed andto which the "insured" must submit or does submit with our consent; or

(c) A written demand for money, when such demand could rea-sonably result in a civil proceed-ing as described in this defini-tion.

b. Does not include any demand or action brought by or on behalf of someone who is:

(1) Your "executive";

(2) Your owner or part-owner; or

(3) A holder of your securities;

in their capacity as such, whether directly,derivatively, or by class action. "Claim" will include proceedings brought by such indi-viduals in their capacity as "affected indi-viduals", but only to the extent that thedamages claimed are the same as would apply to any other "affected individual".

4. "Coverage term" means the following individu-al increment, or if a multi-year "policy period", increments, of time, which comprise the "poli-cy period" of this Coverage Part:

a. The year commencing on the Effective Date of this Coverage Part at 12:01 AMstandard time at your mailing addressshown in the Declarations, and if a multi-year "policy period", each consecutive an-nual period thereafter, or portion thereof ifany period is for a period of less than 12 months, constitute individual "coverage terms". The last "coverage term" ends at 12:00 AM standard time at your mailing



address shown in the Declarations on theearlier of:

(1) The day the "policy period" shown inthe Declarations ends; or


b. However, if after the issuance of this Cov-erage Part, any "coverage term" is ex-tended for an additional period of lessthan 12 months, that additional period of time will be deemed to be part of the last preceding "coverage term".


a. With respect to Insuring Agreement A -Response Expenses, anywhere in theworld.

b. With respect to Insuring Agreement B -Defense and Liability, anywhere in the world, however, "claims" must be brought in the United States (including its territo-ries and possessions), Puerto Rico or Canada.

c. With respect to Insuring Agreement C -Identity Recovery, anywhere in the world

6. "Data compromise liability":

a. Means the following, when they arise from a "claim" or "regulatory proceeding":

(1) Damages (including punitive and ex-emplary damages and the multiple portion of any multiplied damage award), judgments or settlements;

(2) Attorney's fees and other litigation costs added to that part of any judg-ment paid by us, when such fees and costs are awarded by law or court or-der; and

(3) Pre-judgment interest on that part of any judgment paid by us.

b. Also includes any Payment Card Industry (PCI) fine or penalty imposed under a contract to which you are a party when such fine or penalty arises from a "claim". PCI Fines and Penalties do not include any increased transaction costs.

c. Also includes any fine or penalty imposed by law, to the extent such fine or penaltyis legally insurable under the law of the applicable jurisdiction when such fine or penalty arises from a "regulatory proceed-ing".

d. Does not include:

(1) Civil or criminal fines or penalties im-posed by law, except for civil finesand penalties expressly covered un-der paragraphs b. and c. above;

(2) Taxes; or

(3) Matters which may be deemed unin-surable under the applicable law.

e. With respect to fines and penalties and punitive, exemplary and multiplied dam-ages, the law of the jurisdiction most fa-vorable to the insurability of those fines, penalties or damages shall control for the purpose of resolving any dispute between us and any "insured" regarding whether the fines, penalties or damages specified in this definition above are insurable un-der this Coverage Part, provided that such jurisdiction:

(1) Is where those fines, penalties or damages were awarded or imposed;

(2) Is where any "personal data compro-mise" took place for which such fines,penalties or damages were awarded or imposed;

(3) Is where you are incorporated or you have your principal place of business; or

(4) Is where we are incorporated or have our principal place of business.

7. "Defense costs":

a. Means reasonable and necessary ex-penses resulting solely from the investiga-tion, defense and appeal of any "claim" or "regulatory proceeding" against an "in-sured". Such expenses may be incurred by us. Such expenses may include premi-ums for any appeal bond, attachment bond or similar bond. However, we have no obligation to apply for or furnish such bond.

b. Does not include the salaries or wages ofyour "employees" or "executives", or your loss of earnings.

8. "Employee" means any natural person, other than an "executive", who was, now is or will be:

a. Employed on a full- or part-time basis by you;

b. Furnished temporarily to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions;

c. Leased to you by a labor leasing firm un-der an agreement between you and the labor leasing firm to perform duties relat-



ed to the conduct of your business, but does not mean a temporary employee asdefined in Paragraph 8.b.; or

d. Your volunteer worker, which includesunpaid interns.

9. "Executive" means any natural person who was, now is or will be:

a. The owner of a sole proprietorship that isa "named insured"; or

b. A duly elected or appointed:

(1) Director;

(2) Officer;

(3) Managing Partner;

(4) General Partner;

(5) Member (if a limited liability compa-ny);

(6) Manager (if a limited liability compa-ny); or

(7) Trustee,

of a "named insured".

10. "Identity recovery case manager" means one or more individuals assigned by us to assist an "identity recovery insured" with communica-tions we deem necessary for re-establishing the integrity of the personal identity of the "identity recovery insured". This includes, withthe permission and cooperation of the "identityrecovery insured", written and telephone communications with law enforcement authori-ties, governmental agencies, credit agencies and individual creditors and businesses.

11. "Identity recovery expenses" means the follow-ing when they are reasonable and necessaryexpenses that are incurred as a direct result ofan "identity theft" suffered by an "identity re-covery insured":

a. Costs for re-filing applications for loans,grants or other credit instruments that are rejected solely as a result of an "identitytheft".

b. Costs for notarizing affidavits or other similar documents, long distance tele-phone calls and postage solely as a result of your efforts to report an "identity theft"or amend or rectify records as to your true name or identity as a result of an "identitytheft".

c. Costs for credit reports from established credit bureaus.

d. Fees and expenses for an attorney ap-proved by us for the following:

(1) The defense of any civil suit brought against an "identity recovery insured".

(2) The removal of any civil judgment wrongfully entered against an "identi-ty recovery insured".

(3) Legal assistance for an "identity re-covery insured" at an audit or hearing by a governmental agency.

(4) Legal assistance in challenging the accuracy of the "identity recovery in-sured's" consumer credit report.

(5) The defense of any criminal chargesbrought against an "identity recovery insured" arising from the actions of athird party using the personal identity of the "identity recovery insured".

e. Actual lost wages of the "identity recoveryinsured" for time reasonably and neces-sarily taken away from work and awayfrom the work premises. Time away from work includes partial or whole work days. Actual lost wages may include payment for vacation days, discretionary days, floating holidays and paid personal days. Actual lost wages does not include sickdays or any loss arising from time taken away from self-employment. Necessary time off does not include time off to do tasks that could reasonably have been done during non-working hours.

f. Actual costs for supervision of children or elderly or infirm relatives or dependents ofthe "identity recovery insured" during time reasonably and necessarily taken awayfrom such supervision. Such care must be provided by a professional care provider who is not a relative of the "identity recov-ery insured".

g. Actual costs for counseling from a li-censed mental health professional. Such care must be provided by a professional care provider who is not a relative of the "identity recovery insured".

h. Any other reasonable costs necessarily incurred by an "identity recovery insured"as a direct result of the "identity theft".

(1) Such costs include:

(a) Costs by the "identity recovery insured" to recover control over his or her personal identity.

(b) Deductibles or service fees fromfinancial institutions.

(2) Such costs do not include:

(a) Costs to avoid, prevent or detect "identity theft" or other loss.



(b) Money lost or stolen.

(c) Costs that are restricted or ex-cluded elsewhere in this Cover-age Part or policy.

12. "Identity recovery insured" means the follow-ing:

a. When the entity insured under this Cover-age Part is a sole proprietorship, the "identity recovery insured" is the individual person who is the sole proprietor of the "named insured".

b. When the "named insured" under thisCoverage Part is a partnership, the "iden-tity recovery insureds" are the current partners.

c. When the "named insured" under thisCoverage Part is a corporation or other form of organization, other than those de-scribed in a. or b. above, the "identity re-covery insureds" are all individuals havingan ownership position of 20% or more of the insured entity. However, if and only if there is no one who has such an owner-ship position, then the "identity recoveryinsured" shall be:

(1) The chief executive of the insured en-tity; or

(2) As respects a religious institution, the senior ministerial employee.

d. The legally recognized spouse of any in-dividual described in a., b. or c. above.

An "identity recovery insured" must always bean individual person. The "named insured" un-der this Coverage Part is not an "identity re-covery insured".

13. "Identity theft" means the fraudulent use of "personally identifying information". This in-cludes fraudulently using such information to establish credit accounts, secure loans, enterinto contracts or commit crimes.

"Identity theft" does not include the fraudulent use of a business name, d/b/a or any other method of identifying a business activity.

14. "Insured" means:

a. With respect to Insuring Agreement A -Response Expenses any "named in-sured".

b. With respect to Insuring Agreement B -Defense and Liability:

(1) Any "named insured"; and

(2) Any "employee" or "executive" of a "named insured", but:

(a) Only for the conduct of the"named insured's" business with-in the scope of his or her em-ployment or duties as an "execu-tive"; and

(b) Such "employee" or "executive"shall not be an "insured" to theextent his or her actions or omissions are criminal, fraudu-lent, dishonest or constitute anintentional or knowing violation ofthe law.

c. With respect to Insuring Agreement C -Identity Recovery any "named insured".

15. "Loss" means:

a. With respect to Insuring Agreement A -Response Expenses:

Those expenses enumerated in Section I,A., Paragraph 1.b.

b. With respect to Insuring Agreement B -Defense and Liability:

(1) "Defense costs"; and

(2) "Data compromise liability".

c. With respect to Insuring Agreement C -Identity Recovery, "identity recovery ex-penses".

16. "Named insured" means the entity or entitiesshown in the Declarations as a Named In-sured.

17. "Personal data compromise" means the loss, theft, accidental release or accidental publica-tion of "personally identifying information" or "personally sensitive information" as respectsone or more "affected individuals". If the loss, theft, accidental release or accidental publica-tion involves "personally identifying infor-mation", such loss, theft, accidental release oraccidental publication must result in or have the reasonable possibility of resulting in the fraudulent use of such information. This defini-tion is subject to the following provisions:

a. At the time of the loss, theft, accidental re-lease or accidental publication, the "per-sonally identifying information" or "per-sonally sensitive information" need not be at the insured premises but must be in the direct care, custody or control of:

(1) You; or

(2) A professional entity with which you have a direct relationship and to which you (or an "affected individual"at your direction) have turned over (directly or via a professional trans-mission or transportation provider) such information for storage, pro-



cessing, transmission or transporta-tion of such information.

b. "Personal data compromise" includes dis-posal or abandonment of "personally iden-tifying information" or "personally sensitive information" without appropriate safe-guards such as shredding or destruction, subject to the following provisions:

(1) The failure to use appropriate safe-guards must be accidental and not reckless or deliberate; and

(2) Such disposal or abandonment must take place during the time period for which this Coverage Part is effective.

c. "Personal data compromise" includes sit-uations where there is a reasonable cause to suspect that such "personally identifying information" or "personallysensitive information" has been lost, sto-len, accidentally released or accidentallypublished, even if there is no firm proof.

d. All incidents of "personal data compro-mise" that are discovered at the sametime or arise from the same cause will be considered one "personal data compro-mise".

18. "Personally identifying information" means in-formation, including health information, that could be used to commit fraud or other illegal activity involving the credit, access to health

care or identity of an "affected individual" or "identity recovery insured". This includes, but is not limited to, Social Security numbers or account numbers.

"Personally identifying information" does notmean or include information that is otherwise available to the public, such as names and addresses.

19. "Personally sensitive information" means pri-vate information specific to an individual the release of which requires notification of "af-fected individuals" under any applicable law.

"Personally sensitive information" does not mean or include "personally identifyinginformation".

20. "Policy period" means the cumulative total ofeach individual "coverage term" comprisingthe period of time from the inception date of this Coverage Part shown in the Declarations to the expiration date shown in the Declara-tions, or its earlier cancellation or termination date.

21. "Regulatory proceeding" means an investiga-tion, demand or proceeding alleging a violation of law or regulation brought by, or on behalf of, the Federal Trade Commission, Federal Communications Commission or other admin-istrative or regulatory agency, or any federal, state, local or foreign governmental entity in such entity's regulatory or official capacity.


Includes copyrighted material of InsuranceHC 460 IL 01 18 Services Office, Inc., with its permission. Page 1 of 2


ILLINOIS CHANGES - CINCINNATI DATADEFENDERTM COVERAGE PART


CINCINNATI DATA DEFENDERTM COVERAGE PART

A. SECTION II - LIMITS OF INSURANCE AND DEDUCTIBLE is amended to delete in their entirety subparagraphs 1. and 2. of Paragraph B. and replace them with the following:

1. The most we will pay under Insuring Agreement B - Defense and Liability (oth-er than pre and post-judgment interest) isthe Limit of Insurance stated in the Decla-rations.

2. The Insuring Agreement B - Defense andLiability Limit of Insurance is an annual aggregate limit. This amount is the most we will pay for all "loss" covered under In-suring Agreement B - Defense and Liabil-ity (other than pre and post-judgment in-terest) arising out of all "claims".

B. SECTION III - DEFENSE AND SETTLEMENTis amended to delete in its entirety Paragraph4. and replace it with the following:

4. We shall pay all interest on that amount ofany judgment within the Insuring Agree-ment B - Defense and Liability Limit of In-surance which accrues:

a. Before entry of judgment; or

b. After entry of judgment, but before we pay, offer to pay or deposit in court that part of the judgment within the Insuring Agreement B - Defenseand Liability Limit of Insurance or, in any case, before we pay or offer to pay the entire Insuring Agreement B -Defense and Liability Limit of Insur-ance.

These interest payments shall be in addi-tion to and not part of the Defense and Li-ability Limit.

C. The following is added to SECTION IV -CONDITIONS, 5. Legal Action Against Us:

The 2 year period for legal action against us is extended by the number of days between the date the proof of "loss" is filed with us and the date we deny the "claim" in whole or in part.

D. SECTION IV - CONDITIONS is amended todelete in its entirety Condition 8. and replace it with the following:

8. Office of Foreign Assets Control (OFAC) Compliance

Whenever insurance coverage provided by this policy would be in violation of any United States economic or trade sanc-tions, such insurance coverage will not be provided.

E. SECTION IV - CONDITIONS is amended todelete in its entirety Condition 9. and replace it with the following:

9. Other Insurance

If any "loss" resulting from any "claim" isinsured by any other valid policy, we shall not be liable under this policy for a greater proportion of such "loss" than the applica-ble Limit of Insurance stated in the Decla-rations bears to the total applicable limit of liability of all valid and collectible insur-ance against such "loss", unless suchother insurance is purchased specificallyto apply in excess of the Limit of Liabilitystated in the Declarations of this policy.

F. SECTION IV - CONDITIONS is amended to delete in its entirety Condition 11. and replace it with the following:

11. Representations

You represent that all information and statements contained in any application or questionnaire submitted in connection with this Coverage Part are true, accurate and complete. All such information andstatements are the basis for our issuing this Coverage Part and shall be consid-ered as incorporated into and shall consti-tute a part of this Coverage Part. Misrep-resentation or omission of any material fact may be grounds for the rescission of the policy if such misrepresentation ismade with actual intent to deceive or ma-terially affects either the acceptance of therisk or the hazard assumed by the com-pany.


Includes copyrighted material of InsuranceHC 460 IL 01 18 Services Office, Inc., with its permission. Page 2 of 2

G. The following is added to SECTION V - EX-TENDED REPORTING PERIODS 2.b.:

You shall have the option to purchase a 12month Extended Reporting Period to replace the 90 day Automatic Extended Reporting Pe-riod for an additional premium equal to 75% of the expiring annual premium for the applicable Coverage Part.

H. SECTION VI - DEFINITIONS is amended to delete definition 6. "Data compromise liability"in its entirety and replace it with the following:

6. "Data compromise liability":

a. Means the following, when they arise from a "claim" or "regulatory proceed-ing":

(1) Damages (including punitive andexemplary damages and themultiple portion of any multiplieddamage award), judgments or settlements; and

(2) Attorney's fees and other litiga-tion costs added to that part ofany judgment paid by us, whensuch fees and costs are award-ed by law or court order.

b. Also includes any Payment Card In-dustry (PCI) fine or penalty imposed under a contract to which you are a party when such fine or penalty aris-es from a "claim". PCI Fines andPenalties do not include any in-creased transaction costs.

c. Also includes any fine or penalty im-posed by law, to the extent such fine or penalty is legally insurable under the law of the applicable jurisdiction when such fine or penalty arises from a "regulatory proceeding".

d. Does not include:

(1) Civil or criminal fines or penaltiesimposed by law, except for civil fines and penalties expressly covered under paragraphs b. and c. above;

(2) Taxes; or

(3) Matters which may be deemeduninsurable under the applicablelaw.

e. With respect to fines and penalties and punitive, exemplary and multi-plied damages, the law of the juris-diction most favorable to the insura-bility of those fines, penalties or dam-ages shall control for the purpose ofresolving any dispute between us and any "insured" regarding whether the fines, penalties or damages specified in this definition above are insurable under this Coverage Part, provided that such jurisdiction:

(1) Is where those fines, penalties or damages were awarded or im-posed;

(2) Is where any "personal data compromise" took place forwhich such fines, penalties or damages were awarded or im-posed;

(3) Is where you are incorporated or you have your principal place ofbusiness; or

(4) Is where we are incorporated or have our principal place of busi-ness.

However, in no event will the punitive,exemplary damages or the multiplied portion of any multiplied damages be insurable under this contract of insur-ance with respect to a "claim" broughtagainst an Illinois domiciled insured in an Illinois state court, except to theextent such damages are insurable under Illinois law. Illinois law dictatesthat an insurer may not reimburse an insured for punitive damages as-sessed as a result of the insured'sown misconduct.

I. The following is added to definition 7. "De-fense costs" in SECTION VI - DEFINITIONS:

"Defense costs":

c. Does not include the salaries of our em-ployees or the salaries of your staff attor-neys.

J. The term spouse is replaced by the following:

Spouse or party to a civil union recognized un-der Illinois law.


EXHIBIT B









ILND 44 (Rev. 09/07/18) CIVIL COVER SHEETThe ILND 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (See instructions on next page of this form.)

I. (a) PLAINTIFFS DEFENDANTS

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant(Except in U.S. plaintiff cases) (In U.S. plaintiff cases only)

Note: In land condemnation cases, use the location of the tract of land involved.

(c) Attorneys (firm name, address, and telephone number) Attorneys (if known)

II. BASIS OF JURISDICTION (Check one box, only.) III. CITIZENSHIP OF PRINCIPAL PARTIES (For Diversity Cases Only.)(Check one box, only for plaintiff and one box for defendant.)

1 U.S. Government 3 Federal Question PTF DEF PTF DEFPlaintiff (U.S. Government not a party) Citizen of This State 1 1 Incorporated or Principal Place 4 4

of Business in This State

2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5Defendant (Indicate citizenship of parties in Item III.) of Business in Another State

Citizen or Subject of a 3 3 Foreign Nation 6 6 Foreign Country

IV. NATURE OF SUIT (Check one box, only.)CONTRACT TORTS PRISONER PETITIONS LABOR OTHER STATUTES

110 Insurance PERSONAL INJURY PERSONAL INJURY 710 Fair Labor Standards Act 375 False Claims Act120 Marine 310 Airplane 530 General 720 Labor/Management Relations 376 Qui Tam (31 USC 3729 (a))130 Miller Act 315 Airplane Product 367 Health Care/ 740 Railway Labor Act 400 State Reapportionment 140 Negotiable Instrument Liability Pharmaceutical 751 Family and Medical 410 Antitrust150 Recovery of Overpayment 320 Assault, Libel & Slander Personal Injury Leave Act 430 Banks and Banking

& Enforcement of Judgment 330 Federal Employers’ Product Liability 790 Other Labor Litigation 450 Commerce151 Medicare Act Liability 368 Asbestos Personal Injury 791 Employee Retirement 460 Deportation152 Recovery of Defaulted Student 340 Marine Product Liability

510 Motions to Vacate Sentence530 General535 Death Penalty

540 Mandamus & Other550 Civil Rights555 Prison Condition560 Civil Detainee – Conditionsof

Income Security Act 470 Racketeer Influenced andLoans (Excludes Veterans) 345 Marine Product Liability Confinement Corrupt Organizations

153 Recovery of Veteran’s Benefits 350 Motor Vehicle 480 Consumer Credit160 Stockholders’ Suits 355 Motor Vehicle PERSONAL PROPERTY PROPERTY RIGHTS 485 Telephone Consumer190 Other Contract Product Liability 370 Other Fraud 820 Copyrights Protection Act (TCPA)195 Contract Product Liability 360 Other Personal Injury 371 Truth in Lending 830 Patent 490 Cable/Sat TV196 Franchise 362 Personal Injury - 380 Other Personal 835 Patent – Abbreviated 850 Securities/Commodities/

Medical Malpractice Property Damage New Drug Application Exchange385 Property Damage 840 Trademark 890 Other Statutory Actions

Product Liability 891 Agricultural Acts893 Environmental Matters

REAL PROPERTY CIVIL RIGHTS BANKRUPTCY FORFEITURE/PENALTY SOCIAL SECURITY 895 Freedom of Information Act210 Land Condemnation 440 Other Civil Rights 422 Appeal 28 USC 158 625 Drug Related Seizure 861 HIA (1395ff) 896 Arbitration220 Foreclosure 441 Voting 423 Withdrawal 28 USC 157 of Property 21 USC 881 862 Black Lung (923) 899 Administrative Procedure230 Rent Lease & Ejectment 442 Employment 690 Other 863 DIWC/DIWW (405(g)) Act/Review or Appeal of240 Torts to Land 443 Housing/ 864 SSID Title XVI Agency Decision245 Tort Product Liability Accommodations IMMIGRATION 865 RSI (405(g)) 950 Constitutionality of290 All Other Real Property 445 Amer. w/Disabilities - 462 Naturalization State Statutes

Employment Application446 Amer. w/Disabilities - 463 Habeas Corpus - Alien FEDERAL TAXES

Other Detainee (Prisoner Petition) 870 Taxes (U.S. Plaintiff448 Education 465 Other Immigration or Defendant)

Actions 871 IRS—Third Party26 USC 7609

V. ORIGIN (Check one box, only.)Transferred fromAnother District(specify)

MultidistrictLitigationDirect File

1 OriginalProceeding

2 Removed fromState Court

3 Remanded fromAppellate Court

4 Reinstated orReopened

5 6 MultidistrictLitigation

8

VI. CAUSE OF ACTION (Enter U.S. Civil Statute under which you are filing andwrite a brief statement of cause.)

VII. PREVIOUS BANKRUPTCY MATTERS (For nature of suit 422 and 423, enter thecase number and judge for any associated bankruptcy matter previously adjudicated by a judge of this Court.Use a separate attachment if necessary.)

VIII. REQUESTED INCOMPLAINT:

Check if this is a class action Under rule 23, F.R.CV.P.

Demand $ Check Yes only if demanded in complaint.Jury Demand: Yes No

IX. RELATED CASE(S)IF ANY

(See instructions)

Judge Case Number

X. Is this a previously dismissed or remanded case? Yes No If yes, Case # Name of Judge Date Signature of attorney of record

T & E CHICAGO LLC THE CINCINNATI INSURANCE COMPANY

Cook Hamilton County, Ohio

ANDERSON + WANCA 847/368-15003701 Algonquin Rd., Suite 500 Rolling Meadows, IL 60008

■

■ ■

28 U.S.C. Sec. 1332 (Insurance Declaratory Judgment)

July 8, 2020 /s/ Jeffrey A. Berman


INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44

Authority for Civil Cover Sheet

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows:

I. (a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title.

(b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.)

(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section "(see attachment)".

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.

United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here.

United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box.

Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be marked.

Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity cases.)

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section for each principal party.

IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is sufficient to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit, select the most definitive.

V. Origin. Place an "X" in one of the six boxes.

Original Proceedings. (1) Cases which originate in the United States district courts.

Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for removal is granted, check this box.

Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date.

Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.

Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation transfers.

Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is checked, do not check (5) above.

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service

VII. Previous Bankruptcy Matters For nature of suit 422 and 423 enter the case number and judge for any associated bankruptcy matter previously adjudicated by a judge of this court. Use a separate attachment if necessary.

VIII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.

IX. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket numbers and the corresponding judge names for such cases.

X. Refiling Information. Place an "X" in the Yes box if the case is being refiled or if it is a remanded case, and indicate the case number and name of judge. If this case is not being refiled or has not been remanded, place an “X” in the No box.

Date and Attorney Signature. Date and sign the civil cover sheet.

Rev. 09/07/2018


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